It happened!!! the Bitcoin rate exceeded the magical limit of $ 50,000. The leading crypto currency crossed the psychologically important mark on Tuesday afternoon, February 16, shortly after 1 p.m. - a 24-hour plus of 5 percent. The market capitalization of Bitcoin is around 920 billion US dollars, which is only 8 percent away from the one trillion USD mark. What reasons speak for the current Bitcoin strength.
After a somewhat disoriented week, the Bitcoin rate started its record run at 1 p.m. and reached its new all-time high of just under 50,500 US dollars just half an hour later.
Microstrategy, or rather its CEO Michael Sylor, is once again responsible for this rapid increase. The business intelligence company, which has been investing large parts of its cash reserves in Bitcoin since summer 2020, is planning to issue promissory notes with a total value of 600 million US dollars. The Convertible Senior Notes can only be purchased by institutional investors and will expire on February 15, 2027, provided the company does not buy them back in advance. In December last year, MicroStrategy had already issued convertible notes with a volume of 550 million US dollars and invested the funding volume in Bitcoin. According to the press release, the proceeds from the new promissory note will also flow into the purchase of BTC.
Elon Musk
That being said, Bitcoin couldn't get any more public attention right now. Bitcoin makes it onto the front pages of leading financial newspapers such as the Financial Times. In its Saturday issue (February 13th) it had a picture of Elon Musk and a Bitcoin coin printed on the cover. With the question: "Is bitcoin going mainstream?"
The answer to the question should be a resounding YES. This not only applies to small investors, but increasingly also to institutional players. The logo of the oldest bank in the USA could be seen on the cover picture: BNY Mellon. The investment house manages almost $ 2 trillion in customer funds, making it one of the most influential financial players. This week it was announced that it would offer Bitcoin services such as purchase and custody to its customers this year.
Wall Street elite are leading the way
But BNY Mellon is not alone in this. The world's largest asset manager, Blackrock, also recently filed applications with the US securities regulator to be allowed to hold cryptocurrencies in its funds. With $ 8.6 trillion in money under management, the investment giant emanates enormous market power.
If the Wall Street elite invests in Bitcoin, then that is an accolade and a clear sign at the same time: In the next few weeks and months, further billions are likely to flow into the crypto market. To see what the so-called smart money is doing is in the vast majority of cases a smart idea to know in which direction something is developing. Many investors should feel confirmed by this positive news and allocate more money in Bitcoin. So it remains exciting to see which big players will follow and who will commit to Bitcoin in the next few weeks.
BITCOIN MINER HODL
In the past, BTC miners have repeatedly made Bitcoin price corrections. While the miners were the reason BTC failed to break the $ 50,000 mark last weekend, it now appears that they've all but stopped selling. Currently, the level of sales by miners is at a similar level as before the Bitcoin price increase in late 2020.
source: CryptoQuant
This trend becomes clear if you look at the data from CryptoQuant. BTC sales by miners are currently at a multi-month low and in recent weeks fewer and fewer miners have sold Bitcoin on the market.
Bitcoin whales fill their pockets
Large investors have taken advantage of the price decline of the past few days and aggressively bought Bitcoin. Data from Whalemap shows that the crypto reserve currency is developing a strong support zone between the price levels of $ 46,600 and $ 48,500. It is precisely this price level that Bitcoin whales have used in the past few days to further expand their BTC stocks.
New all-time high is only a matter of time !!!
