Bitcoin Price Hits All-Time High, Exceeds $50,000

The premier cryptocurrency, Bitcoin (BTC) has once again updated its all-time high, breaking the psychological mark of $50,000.

February 16, 2021 | AtoZ Markets – Bitcoin broke the record again on February 16, following a week of bullish news including Tesla accepting BTC and MicroStrategy planning to raise another $600 million to buy Bitcoin.

BTC price refreshes record high

The BTC/USD pair gained 5% on Tuesday, according to data from CoinMarketCap and TradingView. Bitcoin, which has been in a certain range for a few days, broke a record by exceeding $50,000 with this rise.

At the time of writing, the total cryptocurrency market capitalization is $ 1.54 trillion. Bitcoin dominance index – 59.9%.

Bulls took over control after Tesla announced on February 8 that it had purchased $1.5 billion worth of BTC.

Analysts of the derivatives platform Deribit said that the news that the oldest bank in the USA, BNY Mellon, will offer crypto services has already reshaped the perspective of investors.

According to the order book data of the giant exchange Binance, sellers were positioned between $49,500-$50,000. Support around $46,500 is growing steadily.

Institutions do not expect sharp correction after BTC growth to $50k

Institutional investors have not shown activity in hedging the fall in the price of the first cryptocurrency after the decline on Monday, which at the moment exceeded 8%. This was reported by analysts of the Deribit cryptocurrency derivatives exchange.

“There is still no long-term hedging on the part of institutions. Funds continue to build up short positions in put options with strikes below $ 40,000 and expiration in June-December,” they said.

Institutional investors will profit from these actions, provided that the price of bitcoin does not fall well below $ 40,000 by the specified date. In this case, the loss will exceed the amount of premiums they received from buyers of put options.

The put-call divergence, reflecting the ratio of the value of bearish rates to bullish rates, remains in the negative zone for three and six months. This indicates the predominance of optimistic sentiment over the specified investment horizon.

Deribit analysts observed that with the price falling from $49,000 to $46,000 on Monday, followed by a return to $48,000, implied volatility avoided a surge. Researchers see this as “growing chances of consolidation in the range from ~ $45,000 to $50,000.”

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