Bitcoin’s $ 50,000 race accelerates as strong institutional support continues

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The crypto market has recently exploded and there is a Bitcoin cryptocurrency (BTC) in the lead. After suffering from volatility for most of the past 60 days, the flagship crypto exhibited a high level of recovery, even surpassing its 200-day moving average earlier this month, suggesting a move to the psychological barrier of 50. $ 000 maybe soon in the cards.

To really put it in perspective, in the past month alone, BTC has registered gains of over 55%, helping to push the total market cap of this relatively nascent space past the $ 2,000 billion threshold. These startling numbers can, in large part, be attributed to the increased institutional adoption that has been observed in relation to this industry in the recent past.

In this regard, some of the major institutional backers of Bitcoin include Microstrategy led by Michael Saylor, electric vehicle maker Tesla, and crypto-focused investment firms Galaxy Digital Holdings and Voyager Digital. Moreover, even a number of mainstream banking institutions have recently entered the crypto fray. Wells Fargo, one of the oldest banks in the United States, is the newest member of a list of growing financial institutions to offer its high net worth clients indirect exposure to Bitcoin.

Other leading financial institutions that also offer a range of crypto-focused financial offerings include JPMorgan, BNY Mellon, Morgan Stanley, Bank of America, and Goldman Sachs, among others.

Finally, according to recent filings with the U.S. Securities and Exchange Commission (SEC), a growing list of wealth management firms such as Illinois-based Clear Perspective Advisors and Ancora Advisors, located in Illinois ‘Ohio, have acquired significant sums from the Bitcoin Investment Trust of Grayscale. (GBTC), signaling a growing demand for the asset among institutional players.

What to expect?

Providing his perspective when he sees Bitcoin hitting the $ 50,000 mark, Iqbal Gandham, vice president of transactions for security and infrastructure solutions provider Ledger, told Cointelegraph that when we hit milestones of important prices, there is always a break much like the one we are seeing. now for the market to stabilize:

The longer we keep it here, the more support it will garner. As for the factors that will drive this race, I really think it’s more psychological than topical. People are just waiting for a trend, so any slightly positive news could cause the price to move dramatically. It’s no longer a question of if, just a when.

Daniele Bernardi, CEO of fintech management firm Diaman Group, told Cointelegraph that his company’s proprietary metrics are all overwhelmingly positive regarding near-term BTC growth. From his personal perspective, however, the next wave of bullish market growth will not be driven solely by Bitcoin, but rather by alternative assets such as Ether (ETH), Cordano (ADA) and Binance Coin (BNB).

My take is that it’s actually more important to focus on altcoins for a while. We can expect Bitcoin’s dominance to decrease for a few months, he said.

Finally, according to Talal Tabbaa, chairman and co-founder of CoinMENA, a Middle East-based cryptocurrency exchange backed by FTX, even though Bitcoin could trade at $ 50,000 in the coming days, such action on the Short term price is quite irrelevant when looking at the grand scheme of things:

Technical analysis has limitations and should not be used just for decision making. In fact, I think it’s crazy that some people think they can draw lines on a chart and predict the future. Macroeconomic events such as China’s ban on mining or the US approval of ETFs will hopefully have far greater impacts on short-term Bitcoin movements than anyone else. what technical analysis.

While there has been some uncertainty over the past few months as to where the crypto industry might go, there is enough evidence to suggest that the market may be ready for another bull run in the near term. In this regard, the blockchain analytics platform Glassnode recently reported that a golden cross formation between the 30-day and 60-day moving averages of the Bitcoins hash ribbon was observed recently.

A golden cross is observed when the short-term average value of an asset exceeds that of its long-term average value. As the chart above shows, the comparison between BTC’s 30- and 60-day hash ribbons indicates that trading volumes are on the rise again. It’s also important to point out that the same formation was spotted before Bitcoin went back up in January 2019 and 2020, and in March 2020 and December 2020.

Finally, the hash rate reported by Glassnodes suggests that miners who may have been forced to move their operations from China following the country’s recent regulatory tightening may have finally established their bases elsewhere. In this vein, it should be noted that just over a fortnight ago, five North American mining operators, including Marathon Digital, Riot Blockchain, Bitfarm, Argo Blockchain and Hut8, reported an increase of 58 % of their operational production.

Other Factors Affecting BTC Price Action

Recently, Elon Musk did an about-face in his outlook on Bitcoin, having despised the first crypto earlier this year regarding its negative environmental impact, thus giving investors who follow Dogefathers every more word to become bullish on Bitcoin. Additionally, Twitter CEO Jack Dorsey and Ark Invests Cathie Wood recently confirmed their long-term investment in the premier crypto.

Regarding the growing adoption of BTC, a spokesperson for cryptocurrency exchange Bitstamp told Cointelegraph that the number of active female investors has grown by more than 24% in the past six months:

The share of transaction volume generated by female investors at Bitstamp increased by an astonishing 58% over the same period, indicating a wave of new investors interested in cryptocurrencies.

Finally, with a growing list of countries, primarily El Salvador, starting to adopt various measures to recognize and regulate the crypto market, it will be interesting to see how the next few days play out for Bitcoin, especially with sentiment dominating the market. market which seems to be extremely positive at the moment.

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