Bitcoin crosses the $ 51,000 threshold
Bitcoin crossed the $ 51,000 mark for the first time in two weeks as positive sentiment among market participants spread to the financial markets ahead of the Christmas season.
The largest digital coin increases 6% to 51,227 USD in 24th of December. Other cryptocurrencies like Ethereum and Solana also flourished.
Bitcoin has plummeted nearly 30% in the past 5 weeks after hitting a record high of nearly 69,000 U.S. dollar Beginning of November 2021. News of a tightening of monetary policy by global central banks has put investor sentiment under pressure in recent weeks. Some investors wonder if high-risk assets like cryptocurrencies and high-quality technology stocks will be corrected anytime soon.
On December 23, those concerns were allayed when US stocks rallied sharply.
“I see Bitcoin as an asset that follows market sentiment. As the willingness to take risks increases, so does Bitcoin and vice versa, ”said Ross Mayfield, Investment Strategy Analyst at Baird.
The Bitcoin price surge coincided with time when Wyoming Republican Senator Cynthia Lummis unveiled a comprehensive digital asset billing schedule for the next year. According to Bloomberg, the bill is seen as a legal framework to protect users, regulate some stablecoin regulations, and create a regulator regulated by the Commodity Futures Trading Commission and the Securities and Exchange Commission.
Jesse Powell, CEO of the Kraken Exchange, recently believes that the price of Bitcoin can drop significantly in 2022.
“Bitcoin’s downtrend remains intact as market participants continue to price in fundamentals,” said Tammy Da Costa, an analyst at DailyFX.
Eswar Prasad, professor of international trade policy at Cornell University (USA), said that Bitcoin may not be around long. Recently the Bank of England (BOE) warned that BTC could become worthless in the future and investors should expect to lose everything.