The ongoing price rally in the Bitcoin market paused on Friday as traders decided to secure their short-term profits against the strengthening US dollar, even though a long-term outlook showed the flagship cryptocurrency in a vital state.
The BTC/USD exchange rate dropped to an intraday low of $46,845 during the European session, according to data fetched from Coinbase Pro, a US-based trading platform. Nevertheless, the downside correction accompanied a meager daily volume, showing a weaker bearish bias as more and more analysts anticipated Bitcoin to hit $50,000 this week.
Bitcoin eyes a breakout above $50,000. Source: BTCUSD on TradingView.com
That is due to a flurry of optimistic catalysts that appeared this week.
On Monday, Fortune 500 company Tesla announced that it had purchased $1.5 billion worth of bitcoin after dumping about 8-10 percent of its cash reserves. The move validated the cryptocurrency’s most bullish narrative: that of a depreciating US dollar and how it [Bitcoin], a scarce asset, can protect people against such devaluations.
On Wednesday, Twitter CFO Ned Segal played with the same idea of adding Bitcoin to the social media giant’s balance sheets. However, he clarified that the need to buy the cryptocurrency would arise only after Twitter’s employers and vendors would demand it in the form of salaries/payments.
The same day, MasterCard announced that it would integrate crypto payments into its existing credit/debit card services later this year. On Thursday, the US’s oldest bank, BNY Mellon, revealed that it would offer Bitcoin custodian services via the same platform that its clients use for traditional securities and cash.
“The institutional and corporate demand for the pioneer cryptocurrency as a store of value and a hedge against inflation is going to keep BTC/USD on the bullish course,” Petr Kozyakov, co-founder and CBDO of the…