March 15, 2021 | AtoZ Markets – Bitcoin price continues to skyrocket. On Saturday March 13th, the digital asset hit yet another all-time-high of over €50,000. The crypto pared these gains, dipping back as much as 9.2% on Monday and is trading just above the €47k level at the time of writing. However, according to on-chain data the uptrend is likely to continue in the near term.
This recent surge means that BTC price has more than doubled thus far in 2021. Up 107% from the December 31st closing price of €28,987.60. The largest cryptocurrency reached its latest all-time-high on optimism that the pandemic relief payments will end up chasing the token’s towering rally.
With experts citing their confidence around the sustained growth of Bitcoin & other cryptocurrencies but believe that it “won’t be a steady curve”.
Bitcoin continues to scale to new heights
The weekend surge came in 12 months to the day the digital asset hit new lows below the €2k level, meaning a leap more than 1160.77%.
Nonetheless, the crypto has retreated in Monday trading. As the number one crypto reverses weekend gains, so did big crypto-exposed stocks. Riot Blockchain Inc. Marathon Digital Holdings Inc & MicroStrategy Inc. have seen their weekend gains pared.
Factors that may contribute to the crypto’s pullback include:
- Increased volatility with a new weekly open.
- Around the time of the price drop the Futures market funding rate of BTC was hovering above 0.1% across major crypto exchanges. What this means is that a large proportion of the market was longing or buying the crypto causing overcrowding for traders.
What Could Shape Price Direction in the Week Ahead?
As the fight again the virus looms on, market’s short-term development will be dominated by one macro issue: stimulus checks. As US President Biden sets out his $1.9 trillion stimulus plan which involves sending $1,400 direct mail payments, something already being hailed an “advertisement for Bitcoin.”
This move however just adds to the colossal amount of debt which prior to this plan sat in the region of $28 trillion. Which according to Cointelegraph signals “a definitive return to inflation”.
In light of Biden’s stimulus plan, for many Bitcoin advocates the concern centers only on how much of the latest fiat windfall will find itself in the path of the crypto ecosystem. As the weekend events unfolded, renowned author of Rich Dad Poor Dad, Robert Kiyosaki quoted “Millions will be very happy with the Government passing the stimulus bill. Problem is free money makes poor and middle class poorer. Buy more Bitcoin”.
As the economies slowly recover, we could see a shift in people’s perception of Bitcoin. With many critics already on board across Europe, with fear of 2008 banking crisis repeating itself. People are now turning to BTC as a way of banking the unbanked or as a hedge against inflation.
MicroStrategy continues to plough its cash reserves into bitcoin, with the current growth who could blame them. On Friday March 12th, the company picked up another €12.5 million worth of Bitcoin. This latest siege brings their total holdings to roughly €4.40 billion.
Moreover, with the gains that the digital assets have seen in recent months means that Elon Musk and Tesla are up 80% on their BTC investment in less than 2 months.
MicroStrategy& Tesla’s crypto accumulation rounds have sparked interest from other institutional investors who have hopped onto the crypto wagon. More and more corporate participation has been driving prices further to the upside, setting the current run apart from 2017’s retail-fueled rally.