Bitcoin soars to 3-month high, nearing $50,000 on improved risk appetite
Vrasidas Neofytou
Head of Investment Research
The price of Bitcoin, the world’s leading digital currency, climbed above $48,000 at a point over the weekend, hitting levels that haven’t been seen since mid-May 2021, while the prices of Ethereum and Dogecoin also rallied to fresh monthly highs of $3,300 and $0,35 respectively.
Risk appetite has improved in the crypto market since the end of July, with the total capitalization recovering most of the huge losses during the “correction phase” between May-July driven by China’s regulatory crackdown, Tesla’s CEO Elon Musk negative comments, and profit-taking.
The recovery rally in the two largest crypto coins Bitcoin and Ethereum has helped the capitalization of the entire cryptocurrency market to break above $2 trillion on Saturday for the first time since mid-May.
Crypto bull investors took back the control in August, sending the price of Bitcoin to near the key resistance level of $50,000, gaining almost 70% since it bottomed at $29,000 on July 20, after hitting a record high at $65,000 on April 14.
On the upside, breaking above $50,000, the price of Bitcoin could retest the key resistance level of $60,000 and even reapproach the all-time high of $65,000.
Similar swing price bullish patterns occur in other major digital currencies such as Ethereum and Dogecoin after suffering a significant pullback in the same period.
Ethereum, the second-largest crypto asset in value, reclaims the $3,300 level after it fell to as low as $1,700 in the same period, well-off an intraday record high of $4,400 in early May.
Dogecoin, the parody-digital coin and famous trade amongst speculators and young crypto traders, has also posted significant gains over the past few weeks. The speculative cryptocurrency went from trading at a low of $0,16 on July 20 to hit a high of $0,35 on Aug. 16, surging by more than 100%.
Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.