- Bitcoin is showing signals of gaining back its bullish momentum
- Being a store of value, the flagship cryptocurrency is continuing to attract several globally
- MicroStrategy is continuing to raise funds and add more BTC to its digital portfolio
- Following celebrities are still able to impact prices in the crypto market Paolo Ardoino believes the momentum could not last longer
Bitcoin and other altcoins have seen tremendous adoption since last year. Several crypto assets have achieved new all-time highs in terms of adoption, market cap, and prices. Notably, the leading crypto asset has attracted mainstream attention globally, which helped its price to achieve surprising levels.
It is also observed that few celebrity tweets like Elon Musk had a greater impact on the prices. When he showed himself a bigger proponent of digital assets, the prices were skyrocketing. However, as last month Musk claimed that he could not support Bitcoin due to environmental concerns, the prices fell sharply.
Bitcoin remained a store of value
Amid the global COVID-19 pandemic, several institutions found Bitcoin as a store of value and an inflationary hedge. The fall in the value of the dollar protected the funds of several in the world from inflation. Moreover, the adoption also helped the investors to multiply their investment portfolio.
According to Paolo Ardoino, the CTO of Bitfinex, the momentum has won bitcoin increasing recognition as an asset class continues to gather pace. Indeed, although the prices remained volatile in the market, it is observed that investors still have hope.
Are there any chances of Bitcoin’s price resilience?
According to Paolo Ardoino, the sentiments in the market towards the king of cryptocurrency continues to shift into positive territory. After the price of the flagship digital currency saw a sharp dip, we observed that it is gaining its momentum back. Notably, the surge in prices is caused by several reasons.
US has plans to issue a digital dollar
The United States took a stance regarding the issuance of its digital dollar. According to few fund managers, the issuance of CBDC will help increase Bitcoin adoption. It is considered by many that if a country launches its CBDC, then the government will have more control over the monetary system than ever. However, ultimately the factor will attract more individuals towards assets like Bitcoin to protect the value of their funds.
MicroStrategy is optimistic about the cryptocurrency market
MicroStrategy is the first-ever institutional investor to have stepped into the Bitcoin market. The firm remained a bigger advocate of the industry since it first took a dip. Michael Saylor, the CEO of the business intelligence firm, has already acquired 92,079 BTC. However, the firm still wants to increase its stash.
In recent developments, the firm sold corporate bonds in order to raise funds for BTC purchase. Notably, the firm has raised more than $500 million from the proceeds of the sale. And is ready to purchase more BTC worth $488 million.
Moreover, the firm has announced to offer stocks worth $1 billion. Notably, Saylor unveiled that the proceeds from the stock offering could be used for BTC purchase. Ultimately, the advocacy of the MicroStrategy CEO is helping pump the Bitcoin market.
Celebrities are still able to impact the crypto market
With his more than 57 million followers on Twitter, Elon Musk has significantly fueled the crypto market. The price of Dogecoin has seen tremendous growth as Musk supported the market. However, last month after Musk took a U-turn from supporting BTC, the asset’s price faced a down-trend.
Following the scenario, during the crypto market crash, several Elon Musk fans began to criticize him. Later after the event, Tesla sold about 10% of its BTC holdings. Hence, many claimed that Musk had played a pump and dump role in the market.
However, following the allegations, Musk clarified his stance. Indeed, the price of Bitcoin since then has gained bullish momentum. Ultimately, the tweet helped the price to surge again.
According to Ardoino, While the past few days have shown once again that celebrities and the movers and shakers in the cryptosphere can impact the price, the bullish momentum will not last forever. It’s still speculative whether the market will witness resilience or a longer-term trend remains to be seen.