After many turbulent weeks, the price of BTC managed to break through the 50,000 USD barrier. Tense trading preceded this with the biggest digital currency in the world seeing its price move horizontally for much of the previous short-term period. Other big digital currencies did the same, with none of them showing any clear path towards either higher or lower token value. At the same time, the market capitalization of the entire crypto space also remained relatively even and level. However, last Tuesday managed to change that trend with BTC breaking through the 50,000 USD and reaching the value of 51,500 USD before it began to recede once more.
The number is valuable not just as a big psychological barrier, which it clearly is, but also because it offers a glimpse into the future spaces that this digital currency might visit in the coming months. 2021 so far has been an absolutely incredible year for the cryptocurrency ecosystem and presently, the final quarter seems to hold the promise of more excitement to come. Like always, the biggest and vaguest cards remain squarely in the hands of regulators and government officials not just from China, but also from the US and other major economies. However, even with those unclear potential impulses, there is still a sense that following the crypto market will be quite a ride before the end of the year.
The price climb continued after that crucial 50,000 USD level and the outlook for the past week rapidly turned bullish, with some experts even suggesting that the next real barrier is the range of the current all-time record. Many analysts pointed out that the 50,000 USD barrier holds an important psychological element to it, as it was noted earlier. That means that some investors will begin pivoting towards BTC tokens for no additional reason besides the fact that it is again over this price limit. Here, the fact that bitcoin has been knocking on the same door for some time plays no difference. For that type of investor, it means little if BTC spent weeks at 49,500 USD. The moment that round number barrier is broken, they begin to swoop in and start to put their money into the market.
There is a logic to that which is more deep-rooted than it might seem at first. The reason for this is the bare fact that mass media will not be able to resist the pull of the new development and thus comment at least somewhat on the BTC reaching this price level. That in turn will provide more free and global exposure to the market opportunity, pushing in weekend traders and those gripped by a new wave of FOMO. So, anyone willing to invest more and ride the subsequent volatility that will push the less experienced out of the investment will likely profit substantially. That applies even if the BTC fails to reach the record level anytime soon. A return to 60,000 USD with a 50,000 USD buy-in will still mean a 20 percent ROI and that can be realistically expected before the end of 2021. Anything beyond that is simply good news on top of great news.
Loss of China FUD
The big event in the crypto community prior to this price hike is the moment when China banned crypto in the most drastic and literal sense so far. In the years before that, the country often came out with a range of news and decisions that somehow curtailed the presence of the crypto industry. The mining sector in the same country’s interior provinces, where electrical power during the rainy season is incredibly cheap, is the best example of these stop-go negative measures. However, with the most recent crypto ban, there has been little to no room for creative maneuvering and alternative interpretation. That is why the Chinese fear, uncertainty, and doubt factor, FUD for short, began with a massive social media (and traditional media) proliferation.
However, it failed to bring down the prices in any big way. Furthermore, what was once the domain of fringe pro-crypto social media accounts and esports enthusiasts who would ridicule the China FUD, the same trend now really blew up with ordinary social media users. All of them were fed up with the same tired attempt to try and bring the market down, which is why the future space of bitcoin price above 50,000 USD will be free from the sudden China FUD threat. There is a feeling that this card has finally been played out completely.
With the road clear of most big potential hurdles, most experts agree that the range of 55,000 USD will be the next major milestone. From there, the BTC network token price will target either a pullback that could again revisit the high 40,000 USD range, or hit 60,000 USD for the first time in months. The second option is where things get interesting. For all intents and purposes, that would mean that the all-time high is once more in the crosshair of the traders. However, unlike the period when these figures had been reached the last time, which is the start of 2021, the situation now is even more different. Today, for the first time ever, a sovereign nation is using bitcoin as legal tender.
That is El Salvador and its regulatory and legal decisions set up a precedent for the entire world, but especially the developing or poor nations. On the other hand, the very damaging narrative from springtime, championed by Elon Musk, about how bitcoin is damaging to the environment, is also losing power. Like the China FUD, it has been played out and the ongoing energy crisis across the EU and many other countries, spurred on by mismanagement of renewable sources, shows the level of complexity behind any such critique. So, if the record value of BTC comes to the forefront, chances are that the 70,000 USD record level might present itself as a natural next step.