Bitcoin
has re-entered the $50,000 price range for the first time in over three months.
The
world's biggest cryptocurrency by market capitalization has gained 2.5 percent
in the last 24 hours and is now trading for approximately $50,050, its highest
level since May 15. Bitcoin currently has a year-to-date return of 71.4
percent.
“This
isn't the first time we've reached this famous milestone, but considering
recent industry advances, $50,000 feels more than justifiable at this moment,”
said Mati Greenspan, CEO of Quantum Economics.
Though
price action stays above a key indication used to measure the momentum of a
particular trend, daily trading volume has remained relatively stable and has
continued to decrease from days before.
Toby
Chapple, head of trading at digital asset company Zerocap, told CoinDesk
through Telegram, "The market continues to linger above the 200-day moving
average with bulls still in play." “In recent days, relative
outperformance by cardano, ether, polkadot, uniswap, and other cryptocurrencies
has offered a supportive bid for BTCUSD.”
In
the form of long interest from investors, Bitocin is flashing indications of
medium-term price. Though, as Chapple pointed out, futures price is not where
it was earlier this year.
Larger
global concerns, such as the forthcoming US Federal Reserve meetings at the end
of August and a Federal Open Market Committee meeting in September, may prompt
the market to examine any potential actions on global liquidity, according to
Chapple.
“Any
Fed move would be bad for price movement and may cause contagion from a
risk-off event in conventional markets,” says the author.
Other cryptos in the top 20 by market capitalization rose in response to bitcoin's rise, with cardano, litecoin, and uniswap gaining the most, ranging from 2% to 12%.
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