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Market Musings

Bitcoin Back Above $50,000 — Is the Correction Over?

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Published on:
March 3, 2021

It’s a remarkable recovery given how Bitcoin had slumped to $43,500 over the weekend.

Bitcoin Back Above $50,000 — Is the Correction Over?

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Bitcoin is back in the ascendancy — with the world’s biggest cryptocurrency breaking $50,000 and surging by 5% over the past 24 hours.

 

The uptick has sparked renewed optimism that the bull run might be about to continue, with BTC’s market cap now above $1 trillion once again.

 

It’s a remarkable recovery given how Bitcoin had slumped to $43,500 over the weekend.

 

Managing to meaningfully break $52,000 could result in a continuation closer to record highs seen around $58,000 — and inevitably, the bulls will be hoping to crack through $60,000.

 

Momentum could be fueled further by a weakening dollar, as appetite for risk-on assets increases among investors. And if Joe Biden’s $1.9 trillion stimulus package finally manages to get approved, this could dilute the value of the greenback even further.

 

Is the Correction Over?

John Ng Pangilinan told CoinDesk that he was now confident that the correction has ended following on from the move above $50,000.

 

Crypto analyst Joseph Young tweeted that Bitcoin’s return to this psychologically significant level is different than last time because the futures market has parity with the spot price and is no longer overcrowded — and institutional interest remains high.

 

Indeed, MicroStrategy have recently been continuing to buy BTC… and speculation is high that Twitter may be raising more than $1 billion in order to hold the cryptocurrency in reserve.

 

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