Bitcoin price briefly trades above $50K after Biden’s stimulus push; what next?

TL;DR breakdown

  • Bitcoin price rallies past $50,000.
  • Investors expect another bull cycle.
  • Stablecoin reserves at an all-time high in anticipation of a bull-run.
  • BTC/USD sets new ATH.

Bitcoin price overview

Bitcoin price finally hit the highly anticipated $50,000 price level, but it did not stick around the price level for long. After several oscillations since last week’s ‘Musk pump,’ the price of BTC ultimately broke past the $50,000 price level during the Asian trading session on the 16th of February as traders analyzed the likelihood of President Joe Biden’s latest push to pass the $1.9 billion stimulus aid. After updating its all-time high price to $50,085 as per data by Binance crypto exchange, the number one cryptocurrency has since pulled back, and it is currently trading below the $50,000 price level. 

At the time of writing, Bitcoin is trading at $49,022, boasting a 24-hour trading volume of $72.86 billion. In the last 24 hours, the largest cryptocurrency in the world has increased by over 3 percent. The record-breaking trend was identified by CryptoQuant chief Ki-Young Ju, who tweeted that stablecoin reserves in crypto exchanges have been continually building up. According to Ju, this is typical behavior by traders who prefer holding their crypto in dollar-pegged stablecoins as they await the right moment to buy. 

Investors cooling-off gold 

Gold investors have been shifting away with its cryptographic rival Bitcoin taking center stage as the best hedge asset against inflation and currency devaluation. According to data shared by Commodity Futures Trading Commission, hedge fund interest in Gold has dropped sharply as attention shifts towards the surging rate of returns and the outlook of a better than anticipated economy restoration in the United States. The info indicates that long Gold positions in Comex Gold futures declined by about 1.8 percent last week. 

Furthermore, the data suggest that short Gold-futures positions declined by more than 2,000 contracts to 47,093. Gold price saw a rise as bulls attempted to clear the $1,850 price level, but the absence of good upwards momentum resulted in the precious metal retracing in the subsequent session. 

It is safe to say that Bitcoin price excelled compared to the precious metal. In contrast, long interest in BTC/USD futures rallied to 28,666 on the 11th of February from a little over 12,000 in late January. In the meantime, short futures contracts rose from 1,267 to 1,873 in the duration as per DataMish

What next for Bitcoin price after refreshing its ATH?

According to the chief strategist at Morgan Stanley, Andrew Sheets, the price momentum of Gold is currently inadequate, and commodities that are declining tend to drop further. According to the American multinational bank, the price of Gold will continue dropping and anticipates the price per ounce to decline below $1,800 before the end of the year. 

On the other hand, market analysts think that Bitcoin is also facing a similar risk after breaking its ATH multiple times in a row. They believe that the crypto market has reached a point where bears should intrude. The top cryptocurrency could undergo a 30-40 percent retracement before recommencing its uptrend. 

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