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Bitcoin Price Jumps Above $50,000 for First Time Since May

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Highlights:

  • Bitcoin surged to an all-time high of more than $50,000 since May.
  • Large firms like Tesla, Mastercard, and BNY Mellon have shown support for cryptocurrencies.
  • Many crypto investors believe the current bull run is different from a late 2017 bubble.

The world’s largest cryptocurrency by market capitalization has gained 2.5 percent in the last 24 hours and touched roughly $50,010 on Sunday, its highest level since May 15. With a 24-hour trading volume of $28,398,835,669 USD, the current Bitcoin price is $49,989.49 USD. Bitcoin has gained 2.53% in the last 24 hours. With a live market cap of $939,522,428,109 USD, CoinMarketCap currently ranks #1.

Bitcoin has recovered after trading in a range of about $30,000 to $40,000 for many weeks after it plunged from a record near $65,000 in mid-April. China’s ban on financial institutions and payment companies providing services related to cryptocurrency transactions and warning against speculative crypto trading was one of the key reasons that had triggered the downfall.

Bitcoin correlations:

Bitcoin’s negative correlation with gold intensified over the past few months as inflation expectations eased. Gold is down roughly 6% year to date, compared with a 65% gain in bitcoin over the same period.

The correlation between bitcoin and the iShares long-duration Treasury bond exchange-traded fund (TLT) briefly turned positive in July as the crypto selloff stabilized. Lately, bitcoin’s relief rally has coincided with a pickup in the 10-year Treasury bond yield, which stalled near the 1.40% resistance level.

If you’re investing in cryptocurrency, expect volatility to continue. That’s why experts recommend keeping your crypto investments to less than 5% of your total portfolio. No matter if crypto is going up or down, the best thing you can do is to not look at it. Set it and forget it like a traditional long-term investment account.

How bullish REALLY is Bitcoin?

The Call-to-Put Ratio, at the time of writing, stood at 2.01 and tipped in favor of bullish call options. Data reflected the 115,843 BTC call options stacked against the 57,742 put options. Clearly, calls dominated puts by almost 50%.

Thus, while bears anticipate BTC’s price to go below $44,000, bulls need a strong push above $50,000 to stay in the game. However, the expiry of contracts on 27 August could push Bitcoin’s volumes, inducing more market momentum. This will be of key importance in maintaining the rally. For now, it seems like the market is more bullish on Bitcoin than it has been in the last couple of months.

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