The price trajectory of bitcoin over the last few months has been an interesting one. After plunging to around $5,400 at the start of the COVID pandemic in 2020, the world’s most significant digital asset saw its price climb steadily following greater crypto adoption as a result of the overflowing turmoil and increased institutional support.
Now, bitcoin has scored another coup, surpassing its 50-day price average which has significant implications for the future of bitcoin’s market stability. This price movement provides insight into bitcoin’s current momentum and future price highs as per recent reports.
All About Bitcoin
The bitcoin value is a very complex concept that has seen meteoric rises and sharp declines over the years. While crypto lovers celebrate an existing bull run, there is the looming fear of an impending gigantic price slump, which has happened in the past.
This is why this price feat is so important for the market. Being able to surpass a 5-day price high means that the bitcoin price has been able to remain fairly stable despite the often turbulent crypto market.
What’s more, this sort of price movement is often indicative of future price increases, which is good news for crypto users. At the same time, for the industry to attract more retail and institutional investors, price stability needs to be achieved on some level. So far, Wall Street giants and firms like WeWork, TIME Magazine, and Tesla are expanding on their acceptance of cryptocurrency, which should only be encouraged.
If the price of bitcoin can maintain its current price point and eventually increase in price, there are only more benefits to be had, especially given that we are at the cusp of major adoption. This sentiment was echoed by Mike McGlone of Bloomberg Intelligence who feels that cryptocurrency fits well with the current world and has nowhere else to go but up.
“Diminishing supply juxtaposed with historically low-interest rates and the substantial amount of money being pumped into the system is a solid foundation for Bitcoin price appreciation if the rules of economics apply,” he said, adding that he sees the price of bitcoin rising to around $100,000 at some point.
With all these, it seems bitcoin and the wider crypto industry will only have bright days ahead.