Bitcoin has displayed high volatility in recent days, with the crypto’s price dwindling slightly below the $50,000 level. The correction comes days after Bitcoin hit a new All-Time-High (ATH) at $59,000 and plunged to around $45,000 level.
After Bitcoin plunged below $50,000, the price again rose to $52,000 on Wednesday and has since then been hovering between $48,000 and $50,000. At the time of writing this report, BTC trades at $48,302.
Analyst explains BTC $100,000 prospect in 2021
Giles Coghlan, chief currency analyst at HYCM, said that its prospect depends on who is answering as crypto advocates feel bullish and only traditionalists are skeptical about the market.
He analyses that the momentum behind the recent gains was driven by public hype” following pro-crypto tweets from Elon Musk and Mark Cuban, but now the enthusiasm “seems to be waning” as Bitcoin struggles to hold $50,000.
He said, “I wouldn’t be surprised if the price slowly drops back to $40,000 in the coming weeks, which seems to be a more realistic level of support. A drop below this is also plausible based on how Bitcoin performed throughout 2020.”
However, he notes that institutional investors endorsing crypto is a significant driver for new price highs, which would also end the domination of the crypto market by retail traders and could lead to a “less volatile” market as a result.
Altcoin in a pool of red
At the time of this report, Bitcoin resurgence back to the $50,000 range has led altcoins to begin to recover and take a bullish turn.
However, BlocDesk observed on Tuesday that the entire crypto market was all red. The crypto market lost over $260 billion then with Bitcoin, whose market cap was above $1 trillion falling to around $900 billion range as it’s price (BTC) dipped below $50,000.
Ethereum price, although gathering momentum, now suffered an 18 percent loss on Tuesday. It traded around $1,449, falling from its new ATH at $2,040. Binance Coin, which also surged to new record levels around $350 lately, has plummeted to $235.
Large- and mid-cap altcoins prices are on the breakout on Thursday, however, as recent announcements, and new integrations pushed trading volumes higher. Cardano’s ADA is the best performing coin in the top 10, currently up 6 percent and trading at $1.10, while Fantom (FTM) continues to benefit from its recent cross-chain integration with Ethereum and is up 31.79 price to a price of $0.7755.