Bitcoin price turns steep: $ 60,000 cracked
Bitcoin (BTC) has done it again: The cryptocurrency was able to set a new record high this morning. The Bitcoin price started to jump at 11 a.m. CET. The price jumped by more than five percent from 57,500 US dollars to 60,450 US dollars in less than two hours. That is behind the price explosion.
With a rapid price explosion, the Bitcoin price was able to replace its old all-time high of 57,469 US dollars on February 21 of this year. He is currently struggling with the US $ 60,000 mark, sometimes it’s briefly above it, sometimes below it. After all, such big brands are hotly contested and met with a lot of resistance. As a rule, it takes several attempts until the Bitcoin price breaks a ten-thousand mark sustainably.
Bitcoin order book provides information
How severe the price swing is can be seen in the order book. There you can see all buy and sell orders on an exchange such as Binance. Anyone who is familiar with order book analysis can therefore draw conclusions about where the next important order marks are set and where the liquidity in the market is heading.
No little fish
This explosive increase is likely to be mainly due to large market players and less isolated small investors. Of course, this again leaves a lot of room for speculation. Has the next major investor mimicked Tesla’s or Microstrategy’s bitcoin investments? In any case, this cannot be ruled out, although it should be noted at this point that particularly high purchase orders only rarely have a direct impact on the market. After all, they are traded over-the-counter (OTC) and therefore do not directly affect the order book.
Novelty: Now also pension funds among Bitcoin investors
One of these big new Bitcoin investors who explains the positive sentiment and the high inflow of funds into the cryptocurrency is Altshuler Shaham. It is an Israeli pension funds from this week it was announced that this already last year has gone into the Grayscale Bitcoin Trust. 100 million US dollars are said to have flowed into the Bitcoin Trust.
A message with a special meaning. After all, it is not a hedge fund that tries to increase the money of the wealthy in a speculative manner. On the other hand, one would not necessarily have expected a Bitcoin investment from a pension fund that manages many people’s retirement provisions. The signal effect here is correspondingly positive that even pension funds are now discovering the digital asset for themselves. An accolade that should cause further waves.
Full speed ahead: $ 1.9 trillion for the US economy
In addition to the numerous new institutional investors who join in every day and thus keep fueling the mood, the US stimulus must not be forgotten either. US President Biden has put together and passed a 1.9 trillion aid package to save the American economy. Among other things, so many citizens will receive a check for $ 1,400 in the next few days. Not everyone is dependent on this money, so one or two US dollars should also flow into Bitcoin.
After all, it’s not just institutional investors like Michael Saylor who are worried about major inflation . The side effects of the innumerable bailouts are likely to lead to consumer price inflation as the economy opens up. This would mean, for the first time in a long time, not only asset inflation, but also a form of currency devaluation that one notices when paying at the checkout. Thanks to the digital gold narrative, Bitcoin has become the ultimate protection against inflation for many people. The current market environment, which could also produce further Bitcoin all-time highs, can be rated accordingly positively.
This post is the first published on citytelegraph.com
