Bitcoin reached $50,000 on Thursday, the highest level since Aug. 23. This was ahead of the Sept. 7, deadline to make the cryptocurrency El Salvador’s legal currency.
According to Messari data provider, the cryptocurrency traded at $49,970 as of the last check. This is an increase of 5.2% in the last 24 hours.
This news was made after ether, the second-largest cryptocurrency in terms of market capitalization, soared above $3,800 Wednesday, for the first time since May when it reached an all-time high. Messari reports that Ether traded at $3,844 on Wednesday. The cryptocurrency saw a 6.9% increase in trading volume over the last 24 hours. It was recently trading at $3781.
According to Travis Kling, chief investment officer at Ikigai Asset Management and founder of bitcoin, the cryptocurrency could surpass $58,000 once it reaches $50,000. He wrote, “Then it’s an uphill battle for new ATHs (all-time highs), and possibly beyond.”
Willy Woo, an on-chain bitcoin analyst, wrote on Twitter that ‘breaking 50 likely a fast track to 60,’ as investors have been in accumulation according to on-chain data.
Bitcoin’s volatility and activity in trading has been relatively low in recent months, which could lead to’sustainable price rallies’, Matthew Blom, global head for sales and trading at crypto-exchange EQONEX wrote in a Tuesday note.
As traders return from summer vacations, the market expects more volatility and activity in September.
Contrary to the price rally’s impact, bitcoin’s market dominance was 42%. This is down from 74% in December 2020 and higher than the 35% all-time low in January 2020 according to TradingView, a market data provider.
Smart contract blockchains like Ethereum and Solana are gaining increasing market share while decentralized finance protocols, and non-fungible tokens, have seen explosive growth.
Kling wrote that BTC is a relatively under-owned ATM. “Should BTC rise to $58k in the coming weeks, it will be interesting for Alts (altcoins to watch) whether they lag, keep pace or outperform.