Bull Is Back: Bitcoin Testing $51,000 after Gaining 14% in Hours

After a dramatic steep correction, the fiat value of Bitcoin is moving up and crossed the $50,000 mark again in a fresh bull run. The digital currency is trading at $50,864 as of press time and is pushing to breach $51,000, which has become a key resistance level now.

The pivot in the prices came after Bitcoin dropped below $46,000 earlier today, meaning it recovered over 14 percent in merely a few hours.

Bitcoin received a massive boost earlier this month after a $1.5 billion investment in the digital currency by United States’ electric car manufacturer Tesla, which is co-founded and led by billionaire Elon Musk. The prices of the crypto rallied for a couple of weeks to go beyond $58,000, setting a record.

Though the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in Bitcoin prices is not unusual, such a rally alarmed many investors, including Musk who tweeted that Bitcoin is overpriced. While Musk’s earlier tweets pushed Bitcoin prices upward, this one did the opposite triggering a slump.

That said, BTC & ETH do seem high lol

— Elon Musk (@elonmusk) February 20, 2021

A Dark Day for Derivative Traders

The recent recovery came after Bitcoin went down 20 percent from its record peak. That massive drop resulted in the liquidation of around $6 billion positions in derivatives.

Despite Bitcoin’s wild swings, more and more corporates are getting interested in investing in digital currency. Most recently, Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term company, Square revealed its $170 million investment in Bitcoin.

Apart from Bitcoin, the share prices of MicroStrategy, a company that bought $1.145 billion worth of Bitcoins, also plummeted more than 20 percent in Tuesday’s trading session. However, the company’s CEO, Michael Saylor is strangely bullish on Bitcoin and is expecting the digital currency’s market cap to hit $100 trillion.

"#bitcoin is a bank in cyberspace," says @michael_saylor. pic.twitter.com/l6tdm3J2Ly

— Squawk Box (@SquawkCNBC) February 23, 2021