Bull Is Back: Bitcoin Testing $51,000 after Gaining 14% in Hours

After a dramatic steep correction, the fiat value of Bitcoin is moving up and crossed the $50,000 mark again in a fresh bull run. The digital currency is trading at $50,864 as of press time and is pushing to breach $51,000, which has become a key resistance level now.

The pivot in the prices came after Bitcoin dropped below $46,000 earlier today, meaning it recovered over 14 percent in merely a few hours.

Bitcoin received a massive boost earlier this month after a $1.5 billion investment in the digital currency by United States’ electric car manufacturer Tesla, which is co-founded and led by billionaire Elon Musk. The prices of the crypto rallied for a couple of weeks to go beyond $58,000, setting a record.

Though the volatility in Bitcoin prices is not unusual, such a rally alarmed many investors, including Musk, who tweeted that Bitcoin is overpriced. While Musk’s earlier tweets pushed Bitcoin prices upward, that one did the opposite triggering a slump.

That said, BTC & ETH do seem high lol

— Elon Musk (@elonmusk) February 20, 2021

A Dark Day for Derivative Traders

The recent recovery came after Bitcoin went down 20 percent from its record peak. That massive drop also resulted in the liquidation of around $6 billion positions in derivatives.

Despite Bitcoin’s wild swings, more and more corporates are getting interested in investing in digital currency. Most recently, payments company Square revealed that its $170 million investment in Bitcoin.

Apart from Bitcoin, the shares prices of MicroStrategy, a company that bought $1.145 billion worth of Bitcoins, also plummeted over 20 percent in Tuesday’s trading session. The company’s CEO Michael Saylor, however, is strangely bullish on Bitcoin and is expecting the digital currency’s market cap to hit $100 trillion.

“#bitcoin is a bank in cyberspace,” says @michael_saylor. pic.twitter.com/l6tdm3J2Ly

— Squawk Box (@SquawkCNBC) February 23, 2021

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