As solid institutional support continues, Bitcoin’s competition to $50,000 heats up

The cryptocurrency market has been soaring recently, and there is a cryptocurrency-Bitcoin (Bitcoin)-Lead the trend. After experiencing volatility for most of the past 60 days, the flagship cryptocurrency showed a high level of recovery and even broke its 200-day moving average earlier this month, indicating that it has risen to the psychological barrier of $50,000 It may appear soon.

In order to really put things in perspective, just last month, BTC Registered The increase of more than 55% will help bring the total market value of this relatively emerging field to exceed the threshold of 2 trillion US dollars. These staggering numbers can be largely attributed to the recent increase in the adoption rate of institutions related to the industry.

In this regard, some of the most important institutional supporters of Bitcoin include Microstrategy led by Michael Saylor, electric car manufacturer Tesla, and crypto-focused investment companies Galaxy Digital Holdings and Voyager Digital. In addition, even some traditional banking institutions have recently joined the encryption field. Wells Fargo, one of the oldest banks in the United States, Is the newest member A series of growing financial institutions provide their wealthy customers with indirect access to Bitcoin.

Other well-known financial institutions that also provide a series of cryptocurrency-focused financial products include JPMorgan Chase, Bank of New York Mellon, Morgan Stanley, Bank of America, and Goldman Sachs.

Finally, according to documents recently filed with the U.S. Securities and Exchange Commission (SEC), more and more wealth management companies—such as Clear Perspective Advisors in Illinois and Ancora Advisors in Ohio—have been acquiring a large number of grayscale Bitcoin Investment Trust (GBTC) stock, marking Growing demand for assets Between institutional participants.

What to expect?

Iqbal Gandham, vice president of transactions at Ledger, a security and infrastructure solutions provider, provided his views when he saw Bitcoin rise to the $50,000 mark. He told Cointelegraph that there is always a pause when important price milestones are crossed. -Witness as we do now-so that the market can be stable:

“The longer we hold here, the more support it will gain. As for the factors driving this operation, I really feel that it is more psychological than news-driven. People are just waiting for trends, so Any slight positive news may cause prices to fluctuate sharply. This is no longer a question of whether or not, but a question of time.”

Daniele Bernardi, CEO of the Diaman Group, a financial technology management company, told Cointelegraph that his company’s proprietary indicators are very optimistic about the recent growth of BTC. However, in his personal view, the next wave of bullish market growth will not be driven entirely by Bitcoin, but by alternative assets such as Ethereum.Ethereum), Cordano (have) And Binance Coin (Bitcoin).

“My view is that focusing on altcoins for a period of time is actually more important. We can expect Bitcoin’s dominance to decline within a few months,” he said.

Finally, according to Talal Tabbaa, chairman and co-founder of CoinMENA (a Middle Eastern cryptocurrency exchange supported by FTX), although Bitcoin may be trading at $50,000 in the next few days, this short-term price trend is Look at the big picture:

“Technical analysis has limitations and should not be used only for decision-making. I actually think that some people think they can draw lines on the chart and predict the future is crazy. China bans mining or the United States hopes to approve ETFs and other macro events will affect the bit The short-term trend of the currency has a greater impact than any technical analysis.”

Bitcoin “golden cross” was found to indicate that the recent price trend is stable

Although there have been some uncertainties about the direction of the crypto industry in the past few months, there is enough evidence that the market may be ready for another round of bull market in the short term.In this regard, the blockchain analysis platform Glassnode recently Report A “golden cross” pattern was recently observed-between the 30-day and 60-day moving averages of the Bitcoin hash band.

When the short-term average of an asset is higher than its long-term average, a golden cross is observed. As can be seen from the above figure, the comparison between the 30-day and 60-day hash bands of BTC indicates that the transaction volume has risen again. It is also important to emphasize that the same pattern was found before Bitcoin bounced back in January 2019 and 2020, and March 2020 and December 2020.

Finally, the hash rate reported by Glassnode suggests that after China’s recent tightening of regulations, miners who may be forced to move their operations out of China may end up establishing bases elsewhere.In this case, it should be noted that just two weeks ago, five North American mining operators—including Marathon Digital, Riot Blockchain, Bitfarm, Argo Blockchain, and Hut8—reported witness Its operating output increased by 58%.

Other factors affecting the price trend of BTC

Recently, Elon Musk turned around His thoughts on Bitcoin, After belittled major cryptocurrencies for their adverse environmental impact earlier this year, thus giving investors (following every word of Dogefather) more motivation to be bullish on Bitcoin.Not only that, Twitter CEO Jack Dorsey and Ark Invest’s Cathie Wood recently Confirmed Their long-term investment in top cryptocurrencies.

Regarding the growing popularity of BTC, a spokesperson for the cryptocurrency exchange Bitstamp told Cointelegraph that the number of active female retail investors in the past six months has increased by more than 24%:

“At the same time, the share of Bitstamp female investors in trading volume has grown by an astonishing 58%, which indicates a surge in new investors interested in cryptocurrencies.”

Finally, as more and more countries-most prominently El Salvador-started Take various measures In order to understand and regulate the cryptocurrency market, it will be interesting to see how Bitcoin will perform in the next few days, especially in light of the current seemingly overwhelmingly positive market sentiment.