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Bitcoin rallies past $42,000 mark, hits new high since mid-May; valuation touches $800 billion

The Financial Express logo The Financial Express 01-08-2021 Sandeep Soni
a close up of a light: Over the past week, Bitcoin's price had jumped more than 22 per cent. Representative image/Pixabay © Provided by The Financial Express Over the past week, Bitcoin's price had jumped more than 22 per cent. Representative image/Pixabay

Bitcoin's price climbed to a new high of $42,607 on Sunday morning since the $42,628-mark on May 19, according to the data from CoinGecko. The crypto king, which was valued at $786 billion at the time of filing this report after touching $800 billion at 9:30 a.m. on Sunday, has been witnessing a gradual increase in its price from $29,599 on July 21 to $34,624 last Monday-up nearly 17 per cent. It further climbed to near $40,000 on the same day. Over the past week, Bitcoin’s price had jumped more than 22 per cent. The digital currency was trading at $41,808 on Sunday.

Bitcoin, which had plummeted from its mid-April peak of around $64,000 for the following three months, has been rallying for the past 11 days. According to Bloomberg, supportive comments from Elon Musk and prominent American investor Cathie Wood helped Bitcoin bump it out of a declining trend. Moreover, speculations following Amazon's recent job posting about hiring a blockchain product lead also helped.

Elon Musk had recently at a Bitcoin-focused conference B Word said that he would confirm with a little more due diligence around the share of renewable energy usage that is involved in mining Bitcoins. And if the percentage of renewable energy usage is at or more than 50 per cent, Tesla would again accept bitcoin. "Another reason for Bitcoin rally is several short positions on BTC got liquidated, which pushed the prices even higher. Bears are the ones who profit by bringing the markets down. However, if the market moves in the direction opposite to what they initially predicted, traders place a 'stop-loss' to cut losses. Since the markets moved higher in a very short period of time, these traders didn't have the chance to modify their trades, and these stop-losses got triggered," Edul Patel, CEO & Co-Founder, Mudrex had told Financial Express Online. On the short positions, these stop-losses are essentially 'buy' orders and as demand for Bitcoin increased, the prices moved even higher.

Also read: Bitcoin losing market dominance in user base to altcoins even as global crypto users surge to 221M

Bitcoin is likely to end 2021 at $66,284 and is further expected to increase to a whopping $470,000 mark by 2030, according to a survey of 42 crypto experts globally published in July. "Halving events and inflation along the way to 2025 and 2030 will likely trigger the larger upside moves," said Justin Chuh, Senior Trader, Wave Financial in the report. "Prices are likely to be continuously driven by supply and demand, less availability for a wider group of users."

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.

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