Once again, Bitcoin ($BTC) has proved doubters wrong and topped $50k after enduring a long three months of despair.
Now the bulls are back in force, and positive sentiment surrounding Bitcoin is back.
A bitcoin revival in the works
The bitcoin price briefly rose above $50k this morning, only to decline below shortly afterward. Nevertheless, this signals a bullish indicator and revival in the strength of the world’s original crypto.
It’s still a good way off its April all-time high of $64,829.14, but plenty of rallying cries for projections above $100k are being heard once more.
Fuelling positive sentiment
As always, there are multiple factors at play, but one of them is the surprise news that PayPal (NASDAQ: PYPL) is allowing UK customers to make crypto transactions.
It’s less than two months since crypto exchange Binance was banned from providing similar services in the UK. Still, Binance is not fully regulated by the UK’s Financial Conduct Authority (FCA), while PayPal is.
A more prominent reason for the bounce is Coinbase (NASDAQ: COIN). The crypto exchange intends to purchase $500m in crypto on its balance sheet while adding 10% of profits into a crypto assets portfolio.
Meanwhile, in the crazy world of non-fungible tokens (NFTs), VISA (NYSE: V) enjoyed a nice global boost in publicity after dropping a cool $150k on CryptoPunk 7610, one of the original assets in the NFT domain. This particular purchase is one of 3,840 female punks.
Visa updates its art collection
Larva Labs launched CryptoPunks during the crypto mania of 2017. It’s essentially a collection of 10,000 pixel art images of misfits and eccentrics. Each unique addition to the CryptoPunk family has its own personality and unique combination of features.
This is not Visa’s first foray into art. It has been building a collection for some time, featuring various artifacts to commemorate commerce of the past, present, and future.
This boost to the NFT space acts as a catalyst to the entire crypto domain adding further rocket fuel to the price of Bitcoin and its peers.
Ethereum is now above $3,300, and ADA is at $2.86 at the time of writing.
While it’s easy to get carried away on a wave of positivity and far-reaching price projections, the more conservative traders see Bitcoin coasting along in a wider trading range.
Nonetheless, Vijay Ayyar, head of Asia-Pacific with crypto exchange Luno in Singapore, told Bloomberg:
“We’re seeing some very bullish signs here,” Bitcoin could “test all-time highs again” after breaking through challenging levels.
Powering the case for widespread adoption
PayPal, Coinbase, and Visa have all helped the case for widespread adoption of crypto.
Last year several prominent companies and institutional investors began adding Bitcoin to their balance sheets. Meanwhile, the Securities and Exchange Commission (SEC) has been fielding an increasing number of applications for crypto exchange-traded funds (ETFs).
The fall from Bitcoin’s all-time high was brutal, losing more than 50% of its value at its low point. This was caused by a combination of bearish sentiment from Elon Musk and a cryptocurrency crackdown in China.
Nevertheless, it’s rebounding nicely, and Musk has once again given his seal of approval and words of hope that it will do well.
There are also rumors Amazon (NASDAQ: AMZN) may be making moves into the crypto arena.
The cryptocurrency market is worth a whopping $2.2 Trillion, adding over a trillion dollars in under a month. This is now such a big entity it’s unlikely to disappear.