The experts have been anticipating the Bitcoin BTC $50K mark for the past few weeks. Now it broke above the crucial psychological threshold for the first time since September 7.
It has been a weak start to October for the US stocks. However, Bitcoin has decoupled from the ailing stock markets and has risen immensely. Whereas Wall Street’s benchmark equity index, S&P 500, has dropped by 2.6%. Bitcoin’s positive price increment contrasts the last price corrections of this year, which coincided with the S&P 500 decline of more than 2%.
Jason Deane, an analyst at Quantum Economics, said:
“It’s too early to say whether this will turn into a new support level in the short term, but it is clear that the overriding market view is bullish.”
Currently, Bitcoin is trading at $50,150.58 and is up 5.5% since the last 24 hours.
The increase in inflation is the primary reason why more and more investors are looking to invest in an asset that forms and hedge against inflation. Bitcoin BTC is that asset that is free from any manipulation by central banks or the government.
Carlos Betancourt, the co-founder of BKCoin Capital, said.
“Many savvy investors look for asymmetric opportunities and a hedge against inflation, and there is always one common asset that comes to mind … remember, bitcoin is the only asset that governments or central banks cannot manipulate.”