Bitcoin (BTC/USD) Price Outlook:
- Bitcoin has surged to new heights after breaking above $50,000 for the first time Tuesday
- The cryptocurrency has received a boost from corporations like Tesla, PayPal and Morgan Stanley that have either invested in the coin itself or are looking to increase accessibility to the market
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Bitcoin Price Forecast: BTC/USD Pushes to New Heights Amid Corporate Adoption
In all too familiar fashion, Bitcoin notched new highs Wednesday just hours after the cryptocurrency breached $50,000 for the first time in history. Even as risk appetite waned in assets like the Nasdaq 100, Australian Dollar and crude oil, demand for the digital asset remained steadfast. Now more than 75% higher in the year-to-date alone, some Bitcoin believers argue the case for a continuation higher has never been stronger as corporations begin wading into the cryptocurrency market.
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In late January, Bitcoin first received a boost from Elon Musk which fueled a key technical break higher and may have altered the coin’s trajectory altogether. The commentary from Tesla’s chairman was the first of many corporate-driven moves in Bitcoin as Tesla itself announced a $1.5 billion investment in Bitcoin shortly thereafter. Since then, companies like Microstrategy (MSTR) have followed suit, piling into the digital asset aiming to latch on to the meteoric rise while simultaneously hoping the exposure will appeal to potential investors.
Outside of direct investments, firms like PayPal and Mastercard have also entered into the Bitcoin craze by facilitating cryptocurrency transactions, thereby increasing the pool of potential users. Further still, NYDIG Asset Management has filed for a US-based Bitcoin ETF with Morgan Stanley as the authorized participant. Such an ETF would increase accessibility further and could translate into extended gains for Bitcoin. Either way, the sudden wave of major corporations embracing Bitcoin in one way or another is an encouraging sign for the cryptocurrency space.
Bitcoin (BTC/USD) Price Chart: 4 – Hour Time Frame (January 2021 – February 2021)
As the largest cryptocurrency by market capitalization and the most widely-known coin, Bitcoin has been a major beneficiary of recent corporate adoptions. With that in mind, it is somewhat reasonable recent gains have pushed BTC/USD to new heights. At these levels, however, technical resistance is relatively sparse aside from trendline projections and psychological levels which might see bullish interest persist.
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That said, it seems there is little to suggest Bitcoin will suddenly reverse lower at this time and shorter-term pullbacks may look to prior resistance as support. In the meantime, keep up to date on recent price developments and analysis using Twitter by following @PeterHanksFX.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX