Following a market-wide rally, Bitcoin returned above $50,000 this week for the first time since early September.
On Wednesday, the cryptocurrency surpassed $55,000. The most recent price rises are coming after bitcoin temporarily dipped below $30,000 at the end of July. Bitcoin is now only $10,000 away from reaching an all-time high in mid-April.
Other major cryptocurrencies have followed bitcoin’s trend in recent weeks, with Ethereum (ether), Binance Coin, and dogecoin all increasing by 15-30% since this time last week. The whole crypto market is currently worth about $2.2 trillion, up more than 15% since the beginning of October.
Following a weak September, several analysts forecast a solid conclusion to 2021. One price prediction model, which was very accurate in August and September, predicts that bitcoin will reach six figures before Christmas, albeit with some caveats.
BTC price on the charge once again
Bitcoin is seeing another price surge, surpassing $55,000 for the first time since May. It is now less than $10,000 from its all-time high, which it reached in mid-April.
The price increase has pushed its market worth past $1 trillion, providing a significant boost to the whole crypto market.
Ethereum (ether) is currently back above $3,500, while dogecoin is now closer to $0.30 than $0.20, after languishing below $0.25 for several weeks. Every one of the top ten most valued cryptocurrencies is currently in the green on a 24-hour and a seven-day basis.
Bitcoin price recovery divides analysts
Is bitcoin’s stunning comeback the second leg of a bull run, or merely a “dead cat bounce” before collapsing again?
This question is currently splitting crypto market analysts, with supporters of the first theory expecting bitcoin will reach new all-time highs in the coming months. Those who are most bullish believe bitcoin will get six digits before Christmas.
One researcher had drawn parallels to similar market patterns experienced in 2017 when the price of bitcoin doubled between early October and December. According to the two opposing views, bitcoin will be worth a fraction of what it is now by 2022, or several multiples of what it is now.
If bitcoin rises another $14,000 in the following weeks, the dead cat bounce idea will be false. However, it must fall well below $30,000 before the price rally argument can be rejected.
BTC price holds firm above $50k
According to CoinMarketCap’s price index, the price of bitcoin has managed to stay over $50,000, hitting as high as $51,839 on Wednesday morning.
It’s currently up more than 20% week over week, and bitcoin’s market valuation is steadily approaching $1 trillion. It was above this location the last time it was seen in May.
Although Bitcoin’s revival has supported the likes of Ethereum (ether) and dogecoin, not all of the top cryptocurrencies have seen price increases overnight. Solana (SOL) plummeted roughly 10%, relegating it to second place in the overall market cap behind Ripple (XRP).