Cryptocurrency takes charge of the market as analysts increasingly note the surging value of Bitcoin and the weakening value of the US Dollar.
After the rollercoaster weekend that brought down the price of BTC from a short-term peak of $58,000 around mid-February, Bitcoin is on a steady rise again. The market volatility had scared many investors when BTC dropped to lows like $44,000 in a sharp correction. Several analysts believed that such a correction was foreseeable as the value of this leading cryptocurrency seemed deliberately bloated.
However, following the drop, BTC in particular and the entire crypto market in general, has made impressive gains over the past few days. The latest reports suggested that Bitcoin hit $51,000 temporarily today. It settled at approximately $50,000. Investors gain confidence in the crypto coin as it reclaims its position in the $50,000s.
Bitcoin Surges As Dollar Value Consolidates
However, the narrative is grim on the other side. As far as theories go, it is well-understood that the value of Bitcoin is indirectly impacted by the value of the US Dollar. In simple words, it means that whenever the value of the Dollar weakens, BTC prices go up.
Analysts note that the dollar is going through signs of a short-term market top. This suggests that the value of the world’s leading currency is stagnating or gradually consolidating. If this is bad news for the stock market and the financial economy in general, it seems to work out fine for the crypto market.
Bitcoin retakes the $50,000 crown and is on the track for more surges. Current metrics show that if BTC can cross the $56,000 mark, then it will have a smooth way up. But before reaching that mark, there is a risk of steep correction from $51,600 to $56,000. This is keeping investors on their toes for now and no one can secure the upside momentum that this coin is going through currently.