$5,000, $10,000, $25,000, all of these numbers are fairly arbitrary, and yet, their roundness is somehow more significant than, say, $5,789, or $11,890, or $26,137.
Therefore, when Bitcoin passed $50K yesterday, it was a big deal, even though, as Paolo Ardoino pointed out, the move was not necessarily unexpected.
Ardoino, who serves as the Chief Technical Officer of cryptocurrency exchange, Bitfinex, said in a statement shared with Finance Magnates: “Bitcoin has surged passed the US$50,000 mark amid widespread optimism that the world’s biggest cryptocurrency will continue to rise,” he said.
“As stock markets in the U.S. and China were closed for public holidays all eyes have been on the king of crypto. Bitcoin’s ascent into mainstream consciousness shows no signs of abating as its properties as digital gold and a base layer in an emerging financial system garner ever-closer interest and scrutiny.”
Bitcoin’s Journey past $50k
It took several ‘tries’ over the past week before there was enough momentum to get Bitcoin passed the $50K mark. BTC first started to show bullish movement toward $50K on Sunday, when data from CoinMarketCap showed that the price hit as high as $49,450. However, by Monday, the price fell to $46,860.
By the end of the day, the price had recovered to $48,670. It fell again to $47,750 in the wee hours of Tuesday morning; by mid-day (GMT), BTC was up to $49,570. Bitcoin would dip one more time to $48,190 before making a parabolic move passed $50,000.
The move was quickly followed by another dip to roughly $48,350. However, as of press time, the price had been steadily climbing for a number of hours and was sitting at approximately $51,270.
However, the rally may be showing signs of levelling off. As of 10:20 GMT on Wednesday, February 17th, the price of Bitcoin was slightly lower on Coinbase ($51,304.50) than it was on Binance ($51,322.49 ). This could be an early indication that retail investors are selling some of their BTC holdings in anticipation of a larger, institutional sell-off.
“$50,000 #Bitcoin Is the New Normal.”
Even if Bitcoin does sink below $50,000 again, many analysts believe that it will not be for long. Blockstream CSO, Samson Mow tweeted on Wednesday that: “$50,000 #Bitcoin is the new normal.”
$50,000 #Bitcoin is the new normal.
— Samson Mow (@Excellion) February 17, 2021
Wu said that if Bitcoin’s status as a “store-of-value” continues to hold, that “the growth potential is off the charts.”
“$50,000 per BTC equates to a market cap of roughly $931B, which is almost 9% of Gold at roughly $10.6T market cap,” he said. “If BTC meets Gold’s market cap, then that would be at least $500,000 per BTC.”
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