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As Bitcoin once again surpasses $40,000, analysts focus on $50,000 | Business and Economic News

Bitcoin rose 4.5% on Monday to $41,020.

after Bloomberg

After a turbulent weekend, Bitcoin once again exceeded $40,000, reaching its highest level in more than two weeks.

The world’s largest cryptocurrency rose 4.5% to $41,020 on Monday, extending its rally to the next day. Since Friday, the token has risen about 9%. The broader Bloomberg Galaxy Crypto Index, which tracks some major cryptocurrencies, also rose, rising by 7.7% at one time.

As Bitcoin breaks through the $40,000 threshold, many chart analysts see $42,500 as the next important level to break through. This number roughly represents its 200-day moving average, and exceeding it may mean a token rebound to $50,000.

“Bitcoin is always volatile, and the manic rise we have experienced is never sustainable. The question is where do we settle? What is the new bottom of Bitcoin?” Former Merrill Lynch Exchange, who founded the “The Sevens Report” newsletter Member Tom Essaye said. “In order for Bitcoin to resume its rebound, I think you need to see wider legal adoption.”

In recent weeks, cryptocurrencies have been under pressure. Since the record of nearly $65,000 in mid-April, Bitcoin has fallen by about 30%. The recent sell-off was exacerbated by the public condemnation of Elon Musk of Tesla Inc., who criticized the amount of energy used by the token-backed server and violated previous attempts to allow customers to use cryptocurrencies to buy his cars. proposal. The strengthening of Chinese supervision has also worsened sentiment.

But after Paul Tudor Jones, a veteran hedge fund manager who said last year that Bitcoin can hedge against inflation, re-approved Bitcoin in a TV interview, the price was raised early this week. Vibrate.

“I like Bitcoin as a diversifier of the portfolio,” Tudor Jones of Tudor Investments said in an interview with CNBC. “Everyone asks me what should I do with my Bitcoin? The only thing I know for sure is that I want 5% gold, 5% Bitcoin, 5% cash, and 5% commodities.”

At the same time, at the weekend, Musk once again stirred the market. He said via Twitter that once Bitcoin is mined by more clean energy, Tesla will allow Bitcoin transactions. The tycoon said that he hopes that miners who have received much attention in recent months will use about 50% of clean energy. The Cambridge Centre for Alternative Finance estimates that 39% of encrypted mining is powered by renewable energy, mainly hydropower.

Bitcoin peers, including Bitcoin Cash, Dash and Ethereum also rose on Monday.

——With the help of Kenneth Sexton.

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