Bitcoin has been through one of the worst falls in the entire rally of 2020-21. From a record-high of $58,000 to $43,000, the fall scared many new investors and created panic. At the same time, big investors and companies managed to buy the dip and add to their already huge Bitcoin balance. One such company is Microstrategy that bought Bitcoin worth more than $1 billion during this period. And as institutional buying increases and Bitcoin recovers, its price has again crossed the $50,000 price point.
Bitcoin Recovers from a bearish market!
The price of Bitcoin was constantly going down in the last week, and day after day, it fell by more than 5%. And finally, after a long wait, it seems that holding the cryptocurreny has finally paid off. As the market again goes bullish, Bitcoin crosses the $50k price point. It rose by around 5% on 3rd March, but before the close hour, it fell again and closed nearly at the open price. But still, the price has stayed in the green, and a buying force can be seen.
Indicators already show the bullish markets of Bitcoin. As after falling 21% last week and also seeing the worst weekly loss since March 20202, the market is already up 13% this week. The heavy buying of big companies is already making the already scarce bitcoin difficult to grab. Well, you might be thinking that you are easily able to buy and sell the crypto well, that’s right. It is not an issue for retail investors, but for big whales investing Billions of dollars; it is tough to get enough of it.
At the same time, hedge funds and banks are also backing crypto, lighting belief in investors’ minds. Just a few days back, JP Morgan advised clients to have 1% of their portfolio in Bitcoin. Simultaneously, the cryptocurreny desk at Goldman Sachs was also resumed after a long time. This growing trend is just the beginning, as per the analysts. And it is highly probable that we will soon see even more investments and people getting more open-minded to digital assets like crypto.
Officials supporting Bitcoin
It is not that all government officials hate Bitcoin. Many even have spoken in favor of it from time to time. And one such personality is Gary Gensler. He said a while back that it is challenging to make sure that the Bitcoin market is free of fraud and manipulation. To this statement, the market reacted quickly. But at the same time, the individual was also very positive about cryptocurrency and its long-term aspects. It will not be a surprise to see governments start accepting Bitcoin soon. As the popularity of cryptocurreny increases, it will get increasingly more difficult to ban it. And yes, then the comments made by Micheal Burry saying Bitcoin is a bubble and Janet Yellen saying that it is “extremely inefficient” will be useless.
What are your thoughts on the fact that Bitcoin recovers and breaches the $50k mark once again? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.