Bitcoin has broken $50,000 after speedily recovering from a Valentine’s Day dumping.
The new record high of $50,341.10 was recorded on Tuesday — and prices surged even higher on some exchanges.
But BTC’s time above this psychologically important milestone was rather short lived, with the world’s biggest cryptocurrency pulling back to $49,000 soon afterwards.
At the moment, many investors and traders are holding their crypto in dollar-backed tokens and waiting until the perfect time to buy.
With investors increasing the volume of stablecoins they hold, analysts have predicted that whales are lined up to sell at and above $50,000.
Data from the Binance order book supports this, by showing sell orders that have been set up in $1,000 increments up to $55,000. CryptoQuant CEO Ki-Young Ju tweeted:
“This $50k battle is about Coinbase whales (USD) vs. Stablecoin whales (USDT).”
It would seem that all signs point to Bitcoin soaring above $55,000 very soon, with rampant predictions about just how far it can go.
The ever-increasing highs of Bitcoin in recent weeks are being compared with the bull run of 2017, but there are some sizable differences this time around. Now, there are several major institutions with chunky investments in Bitcoin, whereas 2017 was highly charged by retail investors. AvaTrade’s chief market analyst, Naeem Aslam, was quoted by Yahoo Finance as saying:
"A decent amount of Bitcoin supply is under institutional clients and US corporates' control. Given the fact that billionaire, US corporate, and institutional clients are supporting the current rally, the bitcoin volatility has tamed to a larger extent. The next target, once the price moves above $50,000, is really $65,000."
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