Bitcoin hits $ 50,000 as Elon Musk’s tweet soars Shiba Inu

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The Meme Shiba Inu token jumped 51% after Tesla CEO Elon Musk, a supporter of crypto, tweeted a photo of his puppy, who is the same breed the token is named after. Photo: Getty

Cryptocurrencies were significantly higher on Tuesday afternoon as bitcoin crossed a key level of $ 50,000 (36,702) for the first time in four weeks.

Bitcoin (BTC-USD) rose 5.4%, trading at $ 50,120. Ethereum (ETH-USD), the second largest crypto by market cap, rose 3.3% to trade at $ 3,445.

“The important factor for the price of bitcoin now is whether it can continue to rise and that will only depend on where the price closes today. [Tuesday]”said Naeem Aslam, chief market analyst at AvaTrade.

He said that “if we see the price closing above $ 50,000 we are very likely to see more upward movement.”

“On top of that, the outage in the tech space such as the Facebook network down yesterday has once again reassured investors that technology like bitcoin never goes down.”

Meanwhile, the Shiba Inu meme token (SHIB-USD) jumped 51% to trade at $ 0.000013 after Tesla (TSLA) CEO Elon Musk, a crypto supporter, tweeted a photo of her puppy, which is of the same breed whose token bears the name.

The race is also the same behind the dogecoin (DOGE-USD), which was up nearly 10% on Tuesday.

Why is bitcoin saved?

Earlier, Aslam had said that one of the reasons for bitcoin’s recovery was the statement by US Federal Reserve Chairman Jerome Powell that stablecoins should not be banned.

It “helped rally the bulls and push bitcoin prices up from $ 40,000.”

Other possible explanations for the rally include a short squeeze and the historically volatile end of September, ”he added.

Watch: BitGo CEO on Bitcoin: “Big spike, big retirement ahead”

He also said crypto traders should consider how the US $ 1 billion bipartisan infrastructure bill will affect crypto markets, if passed.

The bill aims to raise $ 28 billion from the blockchain industry over the next 10 years to fund the development of infrastructure such as roads and bridges.

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A provision in the bill could be used to require cryptocurrency brokers to report their activities to the Internal Revenue Service. The term ‘broker’, however, is incredibly vague and does not clearly exclude other blockchain participants such as miners, wallet providers and software developers, ”Aslam said.

Meanwhile, an analyst has upped his bitcoin forecast and now believes sit could hit new all-time highs of $ 100,000 by the end of 2021.

Bitcoin was in place on Tuesday afternoon. Chart: Yahoo Finance France

Nigel Green, CEO and Founder of financial advisory organization deVere Group, said: Last month I noted in the media that we can expect the price of bitcoin to hit or even surpass its record high. mid-April of $ 65,000 through the end of 2021. “

I now think that is too conservative. I have no doubts that if the current price momentum continues, we could see the price of Bitcoin reach previously unknown highs of $ 100,000. “

Read more: European markets soar after Wall Street’s tech crash

On Powell’s comments, he said: It is likely that other digital currencies will have more regulatory oversight, which is also likely to positively strengthen the sector in the long run, but Bitcoin could be seen as a separate case by authorities due, in part, to its digital gold status.

He is also seeing sustained and growing interest from institutional investors, including Wall Street giants and large payment companies, as well as mega influencers such as Musk, Twitter chief Jack Dorsey and Ark Invest CEO. , Cathie Wood, who believe crypto is the inevitable future of money.

Watch: What are the risks of investing in cryptocurrency?

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