Bitcoin surges $50,000 on Monday – which happened for the first time after the crash that happened in May this year. The world’s largest cryptocurrency price jumped 2.21 per cent to $50,372 at 1200 hours, according to coinmarketcap.com. In April, the world biggest currency Bitcoin surged and hit an all-time high at $65,000. Two positive development this week led to the sharp rise in Bitcoin, the first one being PayPal’s announcement of launching services for buying, selling and holding digital currencies in the UK. This announcement made it the first international expansion of PayPal’s cryptocurrency services outside the United States. Similarly, PayPal launched cryptocurrency services for buying, selling, and holding cryptocurrency in the United States early this year.
The second announcement that led to a sharp rise of Bitcoin was made by Coinbase, a cryptocurrency exchange platform, that the company will buy $500 million in crypto on its balance sheet and will allocate 10 per cent of its quarterly profits into a crypto assets portfolio on last Thursday. The company said very soon it will become the first traded company to hold Bitcoin rival Ether, DeFi tokens and other crypto assets on its balance sheet.
“Bitcoin is currently trading close to the major psychological level of $50,000. On the daily charts, Bitcoin is trading at the 1st resistance of $49,200 and if we break $50,000, the 2nd resistance is seen at $61,000. We have the 1st support all the way down to $45,000 & the 2nd support level could be at $41,000,” Siddharth Menon, COO of WazirX.
Bitcoin has risen and recovered after hovering in the range of $30,000 to $40,000 for many weeks. Bitcoin steeply fell from $65,000 in April to $28,800 in June, after a massive sell-off in June and July, triggered by Chinese ban on the corporates, financial companies, payment companies, providing services related to cryptocurrency. Apart from a Chinese ban imposed on the financial institutions, payment companies, a warning against speculative crypto trading also led to the massive downfall witnessed in cryptocurrency.
In July, Amazon’s job post for a digital currency and blockchain product lead led to a rise in cryptocurrencies. This move of Amazon was seen as a game-changer that could pave the way for the further legitimization of virtual currency. Apart from this, bullish comments by Tesla and Twitter chief executives Elon Musk and Jack Dorsey to incorporate digital currencies in their businesses led to a rise in cryptocurrency.
Ether, the rival currency of Bitcoin was also trading at $3328.37, up 2.07 per cent, according to coinmarketcap.com. Apart from Ethereum, Binance Coin was also trading at $480.34, up 5.14 per cent. As per coinmarketcap.com, the global crypto market cap is currently standing at $2.15 trillion, with an increase of 2.01 per cent over the last day. However, the total crypto market volume over the last 24 hours is $105.65 billion, which makes a 2.74 per cent increase. The volume of all stable coins is now $81.27 billion, which is 76.93 per cent of the total crypto market 24-hour volume. Bitcoin’s price is currently $50,164.02. Bitcoin’s dominance is currently 43.89 per cent, a decrease of 0.07 per cent over the day.
“Traded volumes remained low, indicating the absence of a directional momentum. Markets remained positive entering the weekend, and as the markets are coming out of the weekend, this consolidation points to positive momentum. It will be an eventful week,” said Edul Patel, CEO and Co-founder, Mudrex, a global crypto trading platform.
Since some positive developments are pulling up the biggest currency Bitcoin, what needs to be seen is whether the world and corporates embracing cryptocurrency going to push the Bitcoin above the $60,000 mark.