In the last 24hours, Bitcoin has made an upward movement, making impressive gains as it moved beyond the $57,000 price level. For the second day running, the leading digital asset has reached a new ATH.
Hours ago, the largest crypto asset was able to reach a new all-time high of $57,505 but it has since corrected and it is now trading for $56,800.38 according to data from Coinmarketcap. The crypto king market cap is also very close to reaching 10% of the market cap of gold. At its current growth rate, Bitcoin has grown by over 18% on the weekly charts.
Sentiment, a leading crypto analytical firm, mentioned that BTC current price rise can be attributed due to the increased pressure of shorting. Recently, there have been more believers than skeptics who believe the crypto asset would continue its ascent and as such, many of them are joining the wagon.
Can we say Bitcoin Price is now in the Greed Zone?
A notable name in the crypto industry, Ki-Young Ju, who is the CEO of CryptoQuant has attributed the bullish run of Bitcoin to whales holding stablecoins and retail investors. He also added that the price of the asset has now reached an unhealthy zone because there is no new dollar inflow into the spot market. According to him, this is a very strong indicator derivatives traders should be conscious of though it is not a sell signal.
The continued rise of the asset would most likely pull more institutional investors into BTC especially if it shows some level of stability. It could also lead to the dumping of gold, which is widely regarded as the reserve currency of the world, for its digital counterpart.
A senior strategist with Bloomberg, Mike McGlone notes that Bitcoin’s value could upend that of gold in four years time. To him, the current value of the “digital gold” could just be a stepping stone to higher prices.