Digital Assets: Bitcoin Is Back Above $50K
The leading cryptocurrency has reclaimed the key, psychological level of $50,000 after a hiatus of more than three months.
Bitcoin barreled through the $50,000 price level over the weekend, touching a high of $50,495.95, and putting on about 3% over the last 24 hours, according to Coindesk data. As at the time of writing, it is marginally off that high and is trading at $49,612.46.
Year-to-date, bitcoin has given a return of over 72%, despite its legendary volatility. After touching an all time high of $64,829 in April, the crypto plunged over 50% to consolidate around the $30,000 level between May and July. It broke out to the upside from mid-July and is now treading water around $50,000.
“We’re seeing some very bullish signs here,” said Vijay Ayyar, head of Asia-Pacific with crypto exchange Luno in Singapore, as quoted by Bloomberg. Bitcoin could “test all-time highs again” after reversing from its lows and taking out key resistance levels.
The rally also received legs from the announcement that PayPal (NASDAQ: PYPL) has launched crypto services in the UK. Last week, there was bullish news out from Coinbase (NASDAQ: COIN) that said the exchange was going to invest $500 million of its existing capital and allocate 10% of future profits each quarter into cryptos.
However, over enthusiastic bulls may like to keep in mind one factor that could rain on bitcoin’s latest parade.
Bitcoin and the Jackson Hole Symposium
The Federal Reserve’s Jackson Hole symposium begins Thursday and runs through Saturday. Its theme this year is “Macroeconomic Policy in an Uneven Economy,” with the event being conducted virtually.
All markets, including cryptoassets, will watch Jackson Hole carefully for the Fed’s take on tapering and red hot inflation, and there could be heightened volatility.
Recall that a brief mention in Fed minutes last week of the possibility of tapering led to a global selloff.
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