Flagship cryptocurrency, Bitcoin has made a quick surge of 6% on the day, reclaiming the $50,000 price mark it lost only a week ago. At the time, Bitcoin dropped to the depths of $46k and $47k and traded in the region within the past week. The rally on altcoins led by largest altcoin into the new week must have instigated a run on the price of the top crypto asset.
BTC/USD Chart; Source: TradingView
Price of Ethereum Surges Above $3,400
Ethereum rallied above $3,400, previously a resistance zone for the asset, to $3,500 and is trading a little above $3,700 as of press time. Prior to Thursday’s run, Bitcoin was consolidating at the $46k zone and needed to break away from the $50,000 resistance zone before moving beyond that. Now that the top crypto asset has taken off above $50k, it is a pointer to a potential rally that would see Bitcoin cross its all-time high in April- $65,000.
After attaining the $65k ATH on April 14 in the wake of a bull run, Bitcoin corrected by more than 50% plunging to $35k and a subsequent bottom of $28k in July. Other cryptocurrencies had shed half of their peak, with some even correcting by over 70%.
As of August, the crypto market began its recovery as the bulls displaced the bears. During the uptrend, Bitcoin regained $50k for the first time in three months. However, it later lost it on August 23 as experts predicted a correction before we resume the bullish trend. Reclaiming $50,000 suggests that the bullish trend has been confirmed.
Overall Market Cap Now Above $2.12 Trillion
Meanwhile, the entire crypto market cap previously trying to reach above $2.12 trillion has now crossed to $2.30 trillion as a result of the surge on Bitcoin and ADA. ADA has also attained a new and long-awaited milestone, as it touched $3 for the first time since its creation. ADA is currently the third-largest cryptocurrency by market cap, which is sitting at $97 billion.
Bitcoin’s hash rate has also rebounded as miners from China begin operations again in other regions after quite a long hiatus. As reported, regions like Texas, Canada, Kazakhstan and Iran have been receiving Chinese miners in their numbers. Though mining operations were suspended in Iran owing to the summer, they have resumed operations this month.
Retail and Institutional Investors Bullish on Bitcoin
According to reports, investors have been storing Bitcoin in large quantities. Leading crypto exchange, Coinbase reported a decline in its Bitcoin reserves to the lowest levels- 700,000 BTC. Even as the market has begun an uptrend led by Bitcoin, there is not likely to be a sell-off by investors until Bitcoin crosses $65k.
Institutional investors are also bullish on Bitcoin. Global banking firm Morgan Stanley recently made a massive investment on Grayscale’s Bitcoin Trust (GBTC) valued at $250 million.
Also Read: Indian Crypto Unicorn CoinDCX Becomes A Member Of Advertising Standards Council of India
