Bitcoin price takes aim at a new all-time large as dealers push BTC back over $57,000 and associations increase their exposure to cryptocurrency.
Over the past hour, Bitcoin (BTC) cost jumped to $57,100, a level not seen since Feb. 20 when BTC cost made a brand new all-time high at $58,352. The bullish breakout indicates that investor sentiment has shifted back in favor of bulls and it increases the probability that BTC will try a run at the $60,000 level.
Now’s upside movement was preceded by information which Digital Currency Group intends to buy up to $250 million stocks of their Grayscale Bitcoin Trust (GBTC). The buy comes at an interesting time, believing that on March 8 GBTC shares traded at a 15 percent discount to Bitcoin’s place price on major exchanges.
While institutional investors might have the ability to take credit for the current move, overall interest in Bitcoin can be continuing to grow. Recent statistics demonstrates that 10,000 Bitcoin ATMs are installed in the U.S. since March 1, 2020, signaling a 57.5percent in the number of BTC-equipped ATMs over the past year.
Bitcoin ignores the Financial concerns weighing on stocks
In the past two weeks, stocks markets have been weighed down by a downturn in technology stocks and concerns within the rising Treasury return. Many analysts forecast a strengthening dollar and rising Treasury yield would negatively affect Bitcoin price.
According to Chad Steinglass, Head of Trading in CrossTower, the”inherent current in BTC remains amazingly good,” as it seems like there are significant classic fund players getting involved with BTC on a daily basis.
Steinglass explained that the current addition of Ether (ETH) into the balance sheet of the Chinese software firm Meitu is another positive development as it shows the growing prominence of cryptocurrencies in traditional fund.
Steinglass further clarified the BTC correction of this past two months was the result of a”massive sell-off in technology equities” which struck GBTC hard as the”discount to NAV which GBTC traded got as high as 15%” on March 5 as European dealers”raced in fear” at the close of their Europe equity markets.
I believe that this triggered a drag on BTC prices, as adventurous traders stepped into gradually buy GBTC while selling futures or spot. The fact that spot BTC costs were able to tread water during this route was something I discovered quite bullish.
Altcoins follow Bitcoin’s breakout
Since Bitcoin takes aim at the $60,000 level, many altcoins also chased after new all-time highs.
Meanwhile, Polygon (MATIC) obtained a 33% boost on March 9 when Coinbase declared the token would be added to Coinbase Pro.
The general cryptocurrency market cap stands at $1.74 trillion and Bitcoin’s dominance rate is 61.1%.