Quick Poll

Bitcoin Hits $50,000 as Wall Street’s Big Buys Spark Rally

  • Bitcoin's price reached $50,000 (approximately R950,000), indicating a significant milestone fueled by Wall Street's massive investment in BTC, particularly following the U.S. approval of spot BTC ETFs.
  • Anthony Pompliano highlights that 80% of all circulating Bitcoin has not moved in the last six months, suggesting a tight market where ETFs have quickly scooped up about 5% of the trading supply, underlining the impact of these investment products.
  • Despite a minor retraction due to early profit-taking and overbought conditions, the bullish outlook for Bitcoin remains strong, with the potential to surpass the $50,000 mark and aim for $60,000 (approximately R1,140,000), setting the stage for the next bull cycle in the cryptocurrency market.
BITCOIN

Bitcoin (BTC) has once again touched the heights of late 2021, reaching $50,000 (approximately R950,000), marking a significant milestone for the global BTC community and attracting keen interest from South African investors. This surge precedes the anticipated halving event, with Wall Street’s substantial investments driving the momentum.

Since the U.S. regulatory approval of spot BTC exchange-traded funds (ETFs) on January 10, Bitcoin purchases have seen an unprecedented rise. Reports suggest Wall Street’s massive buying spree, with daily purchases exceeding the network’s production by over 12.5 times. According to venture capitalist and Bitcoin enthusiast Anthony Pompliano, Bitcoin has swiftly become Wall Street’s asset of choice, largely thanks to the introduction of spot ETFs, which have revolutionized the market within just a month of their launch.

Pompliano points out that 80% of all circulating BTC has remained stationary for the past six months, indicating a tight market where only about $200 billion worth of Bitcoin is actively traded. He estimates that the ETFs have captured about 5% of the total BTC market supply in circulation, underscoring the significant impact of these investment products.

The reach of Bitcoin’s influence was echoed by Mexican billionaire Ricardo Salinas, who advised patience and the wisdom of buying during dips, resonating with investors in South Africa and beyond.

However, following the rally to $50,000, Bitcoin has seen a slight retraction, attributed to early profit-taking and the asset’s overbought status, as indicated by the Relative Strength Index (RSI) exceeding 70. Despite this, the bullish outlook for Bitcoin remains intact, supported by positive trends in the RSI and the Moving Average Convergence Divergence (MACD) indicators.

Yet, the threat of a further pullback looms, with potential support zones between $44,300 and $46,760 (approximately R847,145 to R893,894). A drop below $45,554 (approximately R870,519) could signal a deeper correction, potentially testing support levels at $41,880 (approximately R800,364) or even $40,643 (approximately R776,642).

Conversely, increased buying pressure might propel Bitcoin above the $50,000 mark, with eyes set on the $60,000 (approximately R1,140,000) level, representing a 20% increase from current prices. Such a bullish move could pave the way for the next cycle in the cryptocurrency market, drawing significant attention from South African investors looking to capitalize on the digital currency’s growth.

Related

Rateweb

South Africa’s primary source of financial tools and information

Contact Us

admin@rateweb.co.za

Disclaimer

Rateweb strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions.

Rateweb is not a financial service provider and should in no way be seen as one. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. The articles are of a general nature and do not purport to offer specialised and or personalised financial or investment advice. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of these articles.