Bitcoin Price Bounces Closer To 2021, All-Time High

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Bitcoin is trying to stage its next comeback as it touched close to US $ 50,000 (A $ 68,000) for the first time since May, as the larger cryptocurrency market also looked to recover from massive losses.

The most popular cryptocurrency, bitcoin trades at AU $ 44,500, and comes after the top ten cryptos, including ethereum and dogecoin, added US $ 300 billion (A $ 409 billion) to the market in the over the past week.

Tony Sycamore, APAC market analyst at City Index, said the bitcoin rally comes after last week’s Ethereum upgrade and renewed optimism in a bitcoin ETF, which would allow investors to buy the digital coin. without going through the complicated process of negotiation.

“This overshadows concerns that the United States may be on the verge of passing legislation that includes cryptocurrency as part of the infrastructure and jobs law tax reporting legislation,” he said. he noted.

“If bitcoin can see a sustained breakout above the 200-day moving average at $ 45,000, that would confirm a breakout from the top of the three-month range and allow further gains towards $ 52,000.”

RELATED: Panic Spreads As Bitcoin Price Rises And Falls

Crypto experts and investors fear US regulations will make cryptocurrency mining impossible and have described a ‘backdoor ban’, while Coinbase CEO Brian Armstrong called the bill of “disastrous”.

Billionaire Elon Musk has also weighed in on the debate by asserting that there is “no crisis” to justify “hasty legislation”.

Meanwhile, ethereum saw a strong rally last week with gains of up to 30% as it underwent a major software upgrade on Thursday.

The digital coin has been upgraded to stabilize transaction fees and significantly reduce the number of available Ether Tokens, which in turn will increase the price of Ethereum as there will be less supply and more demand. .

RELATED: The Future of Bitcoin and Cryptocurrency Divides Australia

Crypto volatility

Jeremy Ng, Asia-Pacific chief executive of Gemini, said recent research has shown that some crypto enthusiasts in Australia are looking to use digital coins like bitcoin to hedge against inflation.

He said that while some investors are concerned about bitcoin’s volatility, that is to be expected for a relatively new asset class.

“Bitcoin is still maturing while climbing exponentially. Bitcoin, in particular, has had the highest average return of any asset class over the past decade, ”he said.

“At an average annualized rate of return of over 200%, the average return on bitcoin is more than 10 times that of the Nasdaq-100 index which was the second-largest asset class.”

However, regulators around the world are increasingly interested in cryptocurrency and the risks it could pose to people’s finances.

The UK financial regulator has previously warned that people should be prepared to lose all of their money if they invest in cryptocurrency and recently banned one of the world’s largest exchanges, Binance.

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