In a weak crypto market that has lost over 5% in market capitalization in the past 24 hours, the Bitcoin price also fell by almost 4%. This means that the price is currently well below $ 50,000 again. On Wednesday lunchtime, the Bitcoin price was quoted at around $ 47,500. Now many Bitcoin fans are wondering how things will go on with the most valuable cryptocurrency, the market cap of which is still well below the US $ 1 trillion market capitalization. Has the Bitcoin rally come to an end or is it just a technical correction after which the price development will pick up speed again?
Small correction in the strong month
It is true that Bitcoin is growing up as the world’s most famous digital currency. Nevertheless, a volatile development remains inherent in the Bitcoin price. After a strong price development of over 30% last month, the Bitcoin price fell by around 4% on Wednesday alone. As a result, BTC was unable to maintain the US $ 50,000 mark and is now again clearly below the psychologically important price region. So far it has only been a short trip over the $ 50,000. Bitcoin corrects at a still high level.
China’s Bitcoin ban a profit in the long term?
At the beginning of the year, the Chinese government shocked all crypto fans. Because the Bitcoin mining ban caused fear among all convinced crypto enthusiasts. However, the Beijing ban could even be positive for Bitcoin in the long term. Because of a decentralized structure, less volatility and the increased use of renewable energies, there are good reasons for the BTC price to continue to rise. Previously, China was responsible for over 60% of the Bitcoin hashrate. With the ban, Bitcoin could become more independent and at the same time more sustainable.
PayPal is expanding with crypto
Further adaptation could also be positive for Bitcoin. Because the BTC is moving more and more into the focus of the public. Headlines about crypto currencies shape the magazines, especially when there are positive developments. Almost everyone is now familiar with Bitcoin. However, it is particularly positive when established and trustworthy companies implement Bitcoin. Because many investors still have doubts about the trustworthiness of digital currencies. Recently, the payment service provider PayPal announced that the crypto offering will be expanded. So far, the offer has been limited to the USA, but soon British PayPal customers will also be able to buy, hold and sell cryptos.
Hodln is becoming a trend
On-chain analyzes by the Swiss crypto company Glassnode come to the conclusion that more and more crypto investors are using Bitcoin. The short-term trades take a back seat. In the last four months, the number of those BTC owners who keep their Bitcoins in their crypto depot for at least six to twelve months has increased significantly. This is especially true for those investors who are new to cryptocurrencies.
Should you buy Bitcoin now?
The price slide below the US $ 50,000 mark is temporarily weakening Bitcoin’s momentum. In the last two weeks the price has only increased by around 4%. On a monthly basis, however, the Bitcoin price is still more than 30% positive – today’s minus is therefore by no means worrying, as there is also a lack of fundamentally relevant news. The upward trend of the last few weeks is still intact. There is also positive news such as the increasing number of Bitcoin traders or the expansion of the crypto offer at PayPal. If the Bitcoin price surpasses $ 50,000 again on a sustainable basis, new record highs could be reached in 2021.
Open a free crypto broker account? Trade real cryptocurrencies quickly and securely with eToro *.