A day before the world’s largest crypto exchange, Coinbase, has been scheduled to start trading in Nasdaq in a landmark move for crypto advocates, Bitcoin had hit a record peak of $62,741 earlier on Tuesday, stretching out its 2021 rally into a new altitude.
In point of fact, Bitcoin had topped a key $60,000 barrier for the first time earlier last month after Tesla Inc. had purchased an approximated $1.5 billion worth of Bitcoin, the original digital currency, amid widespread expectation of a mainstream adoption of crypto assets.
Since hitting a $60,000 psychological resistance level for the first time on record, Bitcoin, the largest digital asset whose market cap soared to an all-time high of $2 trillion earlier this month, had been largely rangebound for most part of March and early-April, however, in the day’s robust upsurge in Bitcoin appeared to be stemming from a weaker US Dollar alongside a raft of economic data showing an abrupt pick-up in US inflation.
If truth is to be told, a number of crypto traders, both retail and institutional, were contemplating Bitcoin as a hedge against a higher inflation, while the largest US crypto exchange’s Nasdaq listing on Wednesday, added to further bullish wave.
Bitcoin hits record peak a day before Coinbase’s Nasdaq listing
In factuality, latest bitcoin-buying frenzy seems to be meaded out of an optimism over widespread adoption of the digital assets into mainstream trading, while massive investments on crypto assets by a number of financial institutions such as BNY Mellon alongside payment processors likes of Mastercard Inc.
and Visa Inc., led to market participants’ belief that the digital asset might have further rooms to scale higher with inflations perking up amid a weakening American currency. Citing statistics, Bitcoin was last trading 4.5 per cent higher in late-afternoon US trading hours to $62,505.27, while its smaller rival, Ethereum, had spiked to a record high of $2,205 earlier in the day.
Meanwhile, referring to a likely downturn in bitcoin prices over the upcoming days citing a recent trend of profit-taking sell-off wave, a digital asset manager at CoinShares, James Butterfill said, “When bitcoin markets create new highs, the price often range-trades and we witness a round of profit-taking.
During this most recent period, have witnessed a similar profit-taking round, which now looks to have run its course”