Bitcoin storms past $50,000 as rebound rolls on

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Bitcoin storms past $50,000 as rebound rolls on

On Monday, Bitcoin, the original cryptocurrency, had surged past a key psychological handle of $50,000 for the first time in roughly four months, as investors’ bet on the digital currency had spurred up following a US Senate approval of a $1 trillion infrastructure bill, since more US stimulus would likely to lead to an influx of fresh capitals.

On top of that, optimism over a mainstream adoption of the digital asset had firmed up further following a media headline that the US-based online payment processing giant PayPal Holdings Inc. would begin to buy and sell bitcoins in the UK, helping bitcoin extend its weekend rally.

On top of that, a sharp downward spiral in American Dollar ahead of a Central Bankers’ meet, which is now less likely to address a near-term taper-talk in context of a rapid rise in delta cases that has been threatening the global economic recovery, added to further impetus for the virtual currency.

Nonetheless, new investors also had clung on to their ‘long-buy’ positions, stoking prospects of a quick run towards a $60,000-level, as a number of traders who usually contemplate bitcoin as a hedge against a higher inflation, grew histrionically over the recent past amid a drastic rise in inflation indicators.

Bitcoin surges past $50,000 barrier

Nonetheless, after hitting a nearly four-month peak of $50,562, bitcoin rally had lost steam amid a steeper-than-anticipated profit-taking move, while the world’s most popular digital asset was last trading 0.87 per cent lower at $49,029.8 on late US trading hours.

However, Bitcoin rival Ethereum wrapped up the day 1.9 per cent higher at $3,305, as the virtual currency had soared as much as 91 per cent since hitting as low as $1,740 last month. Meanwhile, adding that a late-afternoon plunge in Bitcoin’s prices was mostly catalysed by a profit-taking wave alongside media reports that a number of bitcoin mining firms could remain offline in China on Tuesday, a senior market strategist at OANDA, Edward Moya said, “New investors are the key to this latest bitcoin rally and all signs show they are comfortable with high risk.

Bitcoin could see a fast appreciation here and might not hesitate making a run for $60,000 if appetite for risky assets remain intact”.