Bitcoin breaches $50,000 level as wild run turns investors away from gold

Bitcoin, for a moment, breached the tightly-monitored $50,000 level for the first time Monday evening, reaching the vaunted $50,110 on Coinbase, according to Forbes.

The world’s most popular digital asset shot higher on the Singapore-based crypto exchange Bybit, notching $50,240 following a week-long breather in its aggressive bull run for the year.

Bitcoin hit a fresh, all-time peak of roughly $49,800 yesterday, figures by CoinDesk show. The first virtual asset to scale, bitcoin, has been making it very clear that its ongoing ascent is essentially different from the one digital currencies experienced in 2017 and 2018.

In those years, bitcoin registered an all-time high of almost $20,000 on CoinDesk, but quickly retreated, shedding much of its recent rallies.

Setting aside the yellow metal

Meanwhile, investors are not focusing much on gold as its electronic competitor bitcoin takes the lead in the race between the precious metals against currency devaluation and market inflation.

Figures compiled by the Commodity Futures Trading Commission indicate a drop in hedge fund interests in gold as the spotlight shifts on the increasing nominal yields and the prospects of a better-than-projected U.S. economic rebound.

The interest from prominent investors has backed the narrative that institutional cryptocurrency players are increasingly getting attracted to bitcoin.

This perspective has been a major impetus in the impressive rally in the prices of the crypto, from below $4,000 in March last year to a little over $50,000.

Optimistic forecast

LMAX Digital cryptocurrency strategist Joel Kruger pointed out that bitcoin’s “ability” to sustain its strong momentum is certainly reflective of robust demand for the digital asset.

Craig Erlam, senior market analyst at virtual currency platform Oanda agrees, saying, “it has been a fantastic couple of weeks for the cryptocurrency landscape, with multiple big names making bitcoin-related announcements,” according to Markets Insider.

Things can become more interesting, with investors and traders waiting to join in the next potential announcement, David Russell, vice president of market intelligence at Trade Station, said.

 

Image courtesy of Sabrina & Friends/YouTube Screenshot

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