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Bitcoin optimism as analysts eye $50,000 possibility

09.08.2021

The bull market is very much back, and today’s analysts are on board, giving rise to possible notions that Bitcoin values may approach $50,000 very soon.

Today, Bitcoin reached an almost three-month high, soaring to almost $46,300 during the early hours of the East Coast morning on Monday August 9 which is a major breakthrough considering that this is almost approaching the levels of pre-Elon Musk tweet heights.

The rise in prices has split opinion quite significantly, with some analysts keeping a very open mind whilst others have indicated that this is a precursor to Bitcoin values heading for the stratosphere.

“This move should be telling us that the worst is behind us for now,” said Matt Maley, chief market strategist for asset management company Miller Tabak + Co in New York told Bloomberg. “Unless it reverses the move immediately, it could quickly advance toward $50,000, where it could find some resistance. Still, “the action in very bullish on a technical basis,” he said.

Perhaps even more interesting is the rate at which whales – those being entities or individuals who hold large amounts of Bitcoin on one address – aren’t taking profits despite the huge increase in prices today.

According to on-chain analytics firm Santiment which regularly records the movements in accumulation of Bitcoin by whales, bitcoin millionaire addresses holding between 100 and 10,000 BTC “aren’t showing profit taking signs on this surge” and now hold a combined 9.23 million BTC, which matches the all-time high for this investor category seen on July 28.”

The number of active addresses has risen substantially and this is a clear sign that there is an overall bullish sentiment around Bitcoin.

This time, influencers such as Elon Musk have been relatively quiet, and the market itself is driving the values up via demand, and interest via active addresses, which is encouraging given that the US government has been working out the taxation rulings on Bitcoin over recent days, therefore the response to the government’s taxation rules and potential regulations are well received.

It is clear that the future of financial services is not only electronic, but will be at least in some part decentralized, therefore being an advocate of regulation is vital for any cryptocurrency related business to be able to take their part in the continued development and ongoing evolution of the decentralized financial services world.

It looks as though the cryptocurrency world has not listened to Elon Musk this time, as he said two days ago that “there is no crisis in the cryptocurrency market that now requires hasty regulations”.

Clearly the response to the US government’s meetings and the ensuing massive rise in Bitcoin value is testimony to the advocacy of proper frameworks for future sustainability and development, and this should be celebrated as a good thing.