Bitcoin dips below $48K on Thursday. The dream of the second round of bull market for 2021 is yet to be realized.
Bitcoin was trading above $50K on Monday. Many altcoins and defi tokens followed bitcoin’s lead to reach high values. Cardano’s ADA was at the forefront with price shooting out of an all-time high and closing in on $3. However, Bitcoin has failed to break out from $51K. A pullback came Tuesday, pulling the bitcoin price below $48K.
Traders are split over what the current dip means. Some Bitcoin traders believe that the current race towards $50K is premature. They believe the BTC will retest $40K. For others, this is just a healthy price correction and soon bitcoin will off to higher highs.
Institutional adoption of Bitcoin is ongoing. MicroStrategy announced its recent bitcoin purchase on Tuesday. PayPal has also launched Crypto services in the UK. Hence the overall scenario of the world points towards embracing digital currencies. This can cause a spike in the bitcoin price.
Another factor that may lead to the BTC price surge is the people of El Salvador receiving Bitcoin from the Government. El-Salvador announced the adoption of Bitcoin as legal currency in June 2021. Nonetheless, the process was to take 3 months. BTC will be the official currency of the country within the next 15 days. Besides every citizen will receive $30 in bitcoin from the government.
Bitcoin dips below $48K but altcoins are pumping on their own. Ethereum is trading above $3,000. The London hard fork has made the currency deflationary in nature. ADA is also trading above $2.60 with a 7-days price increase of 23%.
Some of the coins like ATA are also increasing in price on the back of the high trading volume.
At the time of this writing, Bitcoin is dipping below $47K. Let’s see what the future holds.