On Monday, Bitcoin’s price surged and reached $50,000 for the first time after May.
The world’s largest crypto seemed down by around 0.3% at $49,202. After that, it soared as high as $50,563 as investors speculate that the chance of more U.S. stimulus spending could manage to lead to further increases. More mainstream financial services companies made moves in the growing asset class.
Bitcoin climbed by around 83% since hitting an annual low of $27,800 at the beginning of the year.
According to a senior market analyst at OANDA in New York, Edward Moya, profit-taking drove the price retreat. He also mentioned a report on Tuesday showing that some bitcoin mining in China might go offline.
Overview of The Market
Meanwhile, the price of ether seemed up by 1.98% at $3,306. The virtual coin also increased by around 92% since falling to below $1,745 last month.
The crypto recovered as some more traditional financial services firms offered their customers access to digital currency. For example, on Monday, PayPal said it would allow consumers in the U.K. to exchange bitcoin and other cryptocurrencies this week.
Moya stated that taxation concerns drove a couple of traders to hold their crypto assets as a long-term investment, which resulted in removing some volatility in the market.
He said in an email that New investors are essential to this bitcoin rally, and they seem to be comfortable with high risk. He added that bitcoin might see a rapid appreciation and not hesitate to make a run for $60,500.
Other experts also believe the increase might go further if more retail investors return to the market.
A sales trader at the digital asset broker GlobalBlock, Marcus Sotiriou, said in a note that the last time bitcoin reached around $50,000, the Google trends seemed much higher than now.