(Bloomberg) – Bitcoin has eased after scaling $ 61,000 for the first time on bets that some of the pandemic relief payments in the US will eventually chase the tower of the digital token.
The largest cryptocurrency traded at about $ 60,000 in Asia on Monday, after rising to $ 61,742 over the weekend. Bitcoin has climbed more than 1,000% in the past year, pushing higher by signs of increased institutional and corporate interest, coupled with the usual speculative demand.
Crypto has seen a good flow, with traders doing US stimulus research, ‘Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note, adding that Bitcoin should stay above the previous high of just over $ 58,000 to strengthen confidence in a ‘new bulb’.
The lively debate over the possibility of more stimulus-driven profits, and whether it is even possible to work out a long-term value for Bitcoin, continues. The volatile climb of the depth of the pandemic-induced route in markets last year far outweighs the more traditional assets such as stocks and gold.
Bitcoin gold ratio hits record after Token jump of 1,000%: chart
Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte, and Matt Maley of Miller Tabak + Co both see the potential for further gains based on some recent chart patterns. Bitcoin could rise to $ 75,000 very quickly, Maley said. Bloomberg Intelligence strategist Mike McGlone said $ 100,000 could be the next threshold.
The fortunes of a range of companies are increasingly linked to the cryptocurrency, from listed Bitcoin miners and brokers to companies that have invested in the token.
The correlation coefficient between Bitcoin and an equilibrium basket of five stocks that announced investments in the digital currency – Tesla Inc., MicroStrategy Inc., Square Inc., Meitu Inc. and Aker ASA – rose to an average of 0.72 this year from 0.26 in 2020.
Crypto viewers are hard at work measuring the prospects. Greg Waisman, co-founder of the global payment network Mercuryo, said in an email on Sunday that there has been recent “whale activity” where coins are being moved for the first time since 2013. According to him, such events usually lead to sales.
(Updates with comments from strategists in the fifth paragraph.)
For more articles like this, please visit us at bloomberg.com
Sign up now to stay ahead of the most trusted business news source.
© 2021 Bloomberg LP