Bitcoin hit the $50,000 level for the first time in more than two years, thanks to inflows into exchange-traded funds backed by the digital asset. The world’s largest cryptocurrency was also buoyed by expectations of interest rate cuts later this year and last month’s regulatory nod for U.S. exchange-traded funds designed to track its price.
However, Bitcoin fell just below the $50,000 mark in early trade on Tuesday, trading 3.9% higher at $49,971. Whereas, the price of Ethereum, the second-largest cryptocurrency, was up 6% at $2,649.
Also Read | Bitcoin hits $50k level for first time in more than two years
Following the rise in Bitcoin and other altcoins, the global cryptocurrency market cap surged 3.8% to around $1.87 trillion in the last 24 hours.
Bitcoin breaks through the $50,000 mark for the first time since 2021. The surge may be attributed to the robust performance of the US stock market, substantial inflows into spot Bitcoin ETFs, and an upcoming halving event, said Edul Patel, CEO of Mudrex.”Bitcoin faces its next resistance at the $50,250 level, potentially paving the way for a further climb beyond $51,200,” Edul added.Meanwhile, Shivam Thakral, CEO of BuyUcoin, said, “As expected, Bitcoin soared to $50,000 after holding and breaking above the $49,000 support. There are approximately 60 days until the Bitcoin Halving in April 2024 which could potentially push the cryptocurrency market to new highs.””The macro factors such as the anticipated rate cut by the US Fed and the growing popularity of Bitcoin ETFs will drive the market in the mid to long term. We can expect Bitcoin to retest its all-time high of $69,000 post-halving,” Thakral added.
Other altcoins such as Solana, Avalanche, Toncoin and Polygon surged 5-7%. XRP, Cardano, Dogecoin, Polkadot, and Shiba Inu also gained 2-4%.
The total volume in DeFi is currently $6 billion, 8.29% of the total crypto market 24-hour volume. The volume of all stablecoins is now $65.3 billion, which is 90.14% of the total crypto market 24-hour volume, as per data available on CoinMarketCap.
In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, increased to $979 billion. Bitcoin’s dominance is currently 52.41%, according to CoinMarketCap. BTC volume in the last 24 hours increased 76.3% to $34.17 billion.
“Bitcoin crossing $50,000 today, for the first time in two years, is a notable win for all its enthusiasts. The asset, already 3x its Nov. 2022 bottom, looks healthy to rally towards $52,000 in the coming days if it holds current levels. However, post $52,000, a pullback is likely,” Vikram Subburaj, CEO of Giottus, said.
Market sentiment indicates that Bitcoin may consolidate at current levels for a while as altcoins do better comparatively, Subburaj said.
Tech view by Rajagopal Menon, VP, WazirX
BTC’s Exponential Moving Average for a 10-day EMA indicates “Buy” at 46897, and a 200-day EMA indicates “Buy” at 37083. The Simple Moving Average for a 10-day SMA indicates “Buy” at 46108, and a 200-day SMA indicates “Buy” at 35004.
The Relative Strength Index (14) is at 78, indicating ‘Sell”. The Stochastic %K (14, 3, 3) at 95 and the Average Directional Index (14) at 23 indicate a Neutral outlook.
The MACD Level (12, 26), at 1712, indicates “Buy”. The Stochastic RSI Fast (3, 3, 14, 14) at 100 indicates ‘Neutral’, and William’s Percentage at -5 indicates ‘Sell.’