Bitcoin rose 5% on Wednesday, to just over $ 50,000, and investors are speculating whether the move represents a resumption of this year’s powerful bull market or simply a recovery after last week’s sharp drop to around US $ 43,000.
The largest cryptocurrency has now increased 10% so far in March, and a gain this month would mark the sixth consecutive monthly increase, the first time it has happened in seven years.
As of 21:00 UTC (4 pm ET), bitcoin was changing hands just over $ 51,000 at Coinbase. The largest cryptocurrency is still a long way from its highest price, above $ 58,000, reached at the end of last month.
“A week is a long time in cryptography: an impression of $ 43,000 and the setback seen last week may have happened 6 months ago,” wrote Matt Blom, head of sales and trading at the digital asset swap firm EQUOS, on Wednesday. market. “If the market can remain above support at $ 47,850, then a continued push at higher prices is the likely outcome.”
Market analyst Joseph Young tweeted the last $ 50,000 breach came with signs that the market is rejuvenated, with derivative financing costs returning to normal from last week’s high levels, little signs of overcrowding in the future market and blockchain data showing that Institutional investors are preparing to insure for the long term.
In other words, the market now appears to have fully recovered after last week’s decline, which could make a new high more sustainable.
Ether (ETH), the second largest cryptocurrency by market capitalization, rose along with bitcoin on Wednesday. It reached around $ 1,650, rising 7% in 24 hours from 21:00 UTC (16:00 ET).
A potentially worrying sign: despite the asset’s strong performance earlier this month, Grayscale’s ether trust shareholders do not seem so optimistic. The difference between the ether price, as implied in gray vehicle prices, and cryptocurrency spot prices was negative on Tuesday, after a brief positive fluctuation earlier this week.
According to data from Skew, the gray ether trust had a -4.62% premium, possibly a sign that investors are withdrawing their shares, even if ether buyers accumulate in the spot markets or other investment vehicles. (Grayscale is a unit of the Digital Currency Group, which owns CoinDesk.)
Another explanation could be that the negative premium represents increased competition between suppliers of publicly traded ether products. A request was recently filed in Canada for what would be North America’s second ether ETF, CoinDesk reported on Tuesday.
Along with the ether, the decentralized financial assets were in the green on Wednesday. The sector had an added value of 9.5%, according to data from Messari.
Digital assets at CoinDesk 20 are up on Wednesday. Notable winners from 21:00 UTC (16:00 ET):