On Wednesday, March 3, bitcoin quotes on the Binance crypto exchange again approached the level of 52 thousand.At the peak, they reached $ 51.7 thousand, as of 14:30 Moscow time, the first cryptocurrency was day it has risen in price by 6%, writes RBC Crypto.
Bitcoin price is recovering from last week’s plunge. On February 21, the cryptocurrency updated its historical maximum price at a level above $ 58 thousand, after which it began to decline. On Sunday, February 28, quotes dropped to $ 43,000.
The fall took place against the backdrop of a negative news background. For example, two days before the start of the decline in quotations, analysts at the American investment bank JPMorgan in a note to clients called Bitcoin the worst way to hedge. They explained that large investments in cryptocurrency increase its correlation with cyclical assets, making Bitcoin less attractive for portfolio diversification.
Then Bill Gates criticized Bitcoin. He stated that the first cryptocurrency consumes too much electricity, and thus harms nature. According to Gates, transactions on the bitcoin network require more energy than any other method of transferring money. Charlie Munger, deputy chairman of the Berkshire Hathaway board of directors and longtime associate of Warren Buffett, said he would never buy bitcoin. According to Munger, the first cryptocurrency is an “artificial substitute for gold,” and since Munger never buys gold, he has no plans to buy bitcoin either. The investor concluded that BTC will never become a full-fledged payment instrument due to the high volatility.
At the same time, at the end of February, there were large movements of cryptocurrency from address to address. Traders mistakenly linked them to the desire of large holders to get rid of bitcoin en masse, so they started selling the asset, putting pressure on its quotes, cryptanalyst Willie Wu explained. According to him, in fact, transactions were carried out on internal addresses that belong to crypto exchanges in order to ensure the safety of clients’ funds.
Against the background of these events, the quotes of the first cryptocurrency fell to a local minimum of $ 43 thousand, but quickly rebounded from it and returned to growth. Already on March 1, the cost of the cryptocurrency reached $ 49.7 thousand, on Tuesday it rose above $ 50.2 thousand, and on Wednesday it reached a maximum since February 25 at $ 51.6 thousand.
Bitcoin needs a period of consolidation, since many events have taken place around it, explained Alexey Kiriyenko, managing partner of EXANTE. He warned that given such an impressive growth, we may see more than one correction in cryptocurrency quotes. A similar situation with short-term corrections is natural for any actively growing assets.
“All asset corrections are being actively bought out. At this stage, it is possible to speak about the end of the current correction only if the previous maximums of $ 58.3 thousand are exceeded, “Kiriyenko explained.
The growth of quotations was fueled by such news as an additional investment by Microstrategy in the first cryptocurrency for $ 15 million. The number of coins under the management of a public company reached 90.8 thousand. It invested over $ 2.1 billion in bitcoin.
The news that clients of the Japanese corporation Rakuten, specializing in online retail, could have the opportunity to spend bitcoins and other cryptocurrencies in thousands of outlets, could have a positive impact on the value of the cryptocurrency. And CoinDesk sources said that PayPal is preparing to acquire the Curv custodian service for storing cryptocurrencies.
After bitcoin crossed the $ 48 thousand mark, it began to move towards the previous maximum of $ 58.3 thousand, said Yuri Mazur, head of data analysis department at CEX.IO Broker. He predicted that if the first cryptocurrency manages to overcome the $ 58 thousand mark, then the new target level may become $ 66.3 thousand, from which a new corrective wave may begin.
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