Correction Anticipated as Bitcoin Runs Past $51,700 in Parabolic Rally

Another day, another all-time high for Bitcoin.

The benchmark cryptocurrency continued its upside trend heading into the European session Wednesday as its price jumped above $51,700 for the first time in history. Meanwhile, its market capitalization surged to over $960 billion, just 3 percent shy of hitting $1 trillion.

“We should hit $2 trillion this year,” said Ronnie Moas, the founder of Standpoint Research, after the rally. “The 2021 price target is $112,000.”

Fundamentally-Driven Bitcoin Boom

Traders increased their bids in the cryptocurrency market after Nasdaq-listed software intelligence firm MicroStrategy announced that it plans to buy $600 million worth of bitcoins by raising funds via a debt sale. It already holds more than 70,000 BTC in its reserves, whose current worth is a little over $3.5 billion.

Bitcoin was already riding higher after Tesla, a Fortune 500 company, revealed that it holds $1.5 billion worth of BTC in its reserves. The US carmaker also raised upside speculations in the Bitcoin market after announcing that it may purchase more of the cryptocurrency and might even start accepting it as a payment mode for its products and services.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin is close to hitting a $1 trillion market valuation. Source: BTCUSD on
Bitcoin is close to hitting a $1 trillion market valuation. Source: BTCUSD on

The latest spike brought the Bitcoin price up by 56.07 percent in February and in March 76.32 percent on a year-to-date timeframe. Measured from its mid-March nadir of $3,858 last year, the cryptocurrency was up 1,188 percent.

Further Upside or Correction?

Many analysts anticipated the Bitcoin price rise to continue further into the quarterly session, with upside targets flying between $52,000 and $65,000 all over social media.

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