June 15, 2021

Bitcoin Eyes $50K with Weaker Dollar, Stimulus, and Tesla in Focus

2 min read

Bitcoin rally paused after notching a new record high on Tuesday, suggesting that its supersonic rally in the previous session may pare a part of its gains.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
 Bitcoin corrects lower after hitting $48,200. Source: BTCUSD on TradingView.com Bitcoin remedies lower after striking$ 48,200. Source: BTCUSD on TradingView.com The benchmark cryptocurrency headed for its most robust one-day efficiency in more than 3 years as its price surged to$ 46,750 from $38,871 on Monday.

The ecstasy sustained into the next day's Asian session, with BTC/USD hitting another historical peak level of $48,200. However, sellers took control at the top, causing a minor drop as the market got in the European session. On the other hand, analysts remain persuaded that Bitcoin will rise towards $50,000 in the coming sessions.

One Common Bitcoin Bull

At the core of their bullish analogy stays the United States dollar. Initially, the world's leading electrical carmaker Tesla has exposed that it holds $1.5 billion worth of Bitcoin as “& ldquo; alternative reserve possessions” & rdquo; to its dollar-based treasury, revealing that its boss Elon Musk finds the greenback too dangerous to hold.

Once again, the bearish predisposition for the dollar develops from the prospect of ultra-accommodative Federal Reserve policies and the United States President Joe Biden's intent to pass a $1.9 trillion stimulus plan. A disappointing labor report launched Friday even more fanned the capacity of extensive federal government help, pressing genuine yields and the dollar down in the most recent weekly session.

“& ldquo; Although Bitcoin might continue playing the variety in the near term, it is possible the “& ldquo; digital gold narrative” & rdquo; gets again in Q2 as a brand-new stimulus is passed and the Fed continues to keep rate of interest low into 2023,” & rdquo; wrote Ty Young, research study analyst at US-based cryptocurrency analytics/data aggregator firm, Messari.

US dollar, DXY, US dollar index, greenback
United States dollar index breaks bearish on its rising channel, raising prospects of a negative breakout
. Source: DXY on TradingView.com United States dollar index breaks bearish on its ascending channel, raising prospects of a negative breakout. Source: DXY on TradingView.com

He however alerted about a faster-than-expected economic healing in the US, led by optimistic vaccination rates, that could weigh down on Bitcoin as the government limits stimulus, turning financiers' focus back on the US dollar and Treasury bonds.

“& ldquo; In the previous year, Bitcoin has actually solidified itself as a macro property, causing brand-new institutional gamers getting included. The impacts of this could imply crypto markets trade more similarly to standard markets,” & rdquo; Mr. Young even more noted, adding that it might permit more hedge funds to provide bitcoin-enabled services.