(Bloomberg) – Bitcoin retreated on Monday after scaling $ 61,000 for the first time with bets that some of the pandemic relief payments in the U.S. will eventually chase the digital token’s rise.
The largest cryptocurrency was trading at about $ 58,000 at 7:40 am in London, after reaching a maximum of $ 61,742 on Saturday. Bitcoin rose more than 1,000% last year, driven by signs of increased institutional and corporate interest along with the usual speculative demand.
Crypto saw “a good flow, with traders doing stimulus checks in the US,” wrote Chris Weston, head of research at Pepperstone Group Ltd., in a note, adding that Bitcoin needs to stay above the previous high of just over $ 58,000 to increase confidence in a “new bull leg”.
The lively debate over the scope of further stimulus-driven gains and whether it is even possible to calculate a long-term value for Bitcoin remains accelerated. The volatile escalation of the token from the depths of the pandemic-induced defeat in markets last year far outpaces more traditional assets, such as stocks and gold.
Bitcoin-Gold Ratio Reaches Record After 1,000% Bounce of Token: Graph
Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte, and Matt Maley at Miller Tabak + Co see the potential for additional gains based on some recent chart patterns. Bitcoin could rise to $ 75,000 “very quickly,” said Maley. Bloomberg Intelligence strategist Mike McGlone said $ 100,000 could be the next limit.
The fortunes of a number of companies are increasingly linked to cryptocurrency, from listed Bitcoin miners and brokers to companies that have invested in the token.
For example, the correlation coefficient between Bitcoin and an equal weight basket of five stocks that announced investments in digital currency – Tesla Inc., MicroStrategy Inc., Square Inc., Meitu Inc. and Aker ASA – has risen to an average of 0.72 this year from 0.26 in 2020.
Crypto observers are trying to assess the prospects. Greg Waisman, the co-founder of the global payments network Mercuryo, said in comments emailed on Sunday that there are some recent “whale activities” where 2013 coins were first moved. These events, he said, often lead to sales.
(Updates the markets in the second paragraph.)
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