The first week of March is shaping up pretty well for BTC buyers. The pair has recovered by almost 15% and went up above $ 50,000 again. For many traders, this price level is associated with the “bullish” phase of the market, which suggests that bitcoin will most likely maintain its uptrend.
Institutional traders keep fueling interest in BTC. According to the latest data from the options market, institutional traders are still confident in BTC’s future growth, betting on bitcoin price growth to $75000 and beyond. Several traders took bull call spreads at $75,000 and $100,000 strike call options expiring on May 28 via over-the-counter (OTC) on Monday. Looks like a new powerful wave of growth may occur by summer.
Comments by an iconic representative of the finance industry and director of the global Macro analytics department at Fidelity Investments Jurrien Timmer provided additional support for bitcoin this week.
“Bitcoin has reached the point where it can be considered for investment”
In his report titled “Understanding bitcoin,” a top Fidelity executive noted that bitcoin can be considered a form of digital gold and used to hedge against inflationary risks. Timmer's views are aligned with those of SkyBridge Capital founders Anthony Scaramucci and Brett Messing. In January, they released an article in which they described bitcoin as a mature investment asset, comparable in reliability to traditional gold and bonds.
Market participants drew attention to one more BTC peculiarity. Recently, bitcoin price movements have been positively correlating with the dynamics of the US stock market. This week was no exception. As soon as the index began to rise, the cryptocurrency market also found itself in the green territory. All traders are currently eyeing the adoption of a new stimulus package in the United States. Earlier on Friday, the US House of Representatives approved Joe Biden's $ 1.9 trillion aid plan. The Senate is split 50-50 between Democrats and Republicans, with the US Vice-President (who, of course, shares Democrats’ views) casting the decisive vote. One way or another, the US President and his administration insist on the final approval of the package by March 14.
Experts believe that as soon as another portion of cheap liquidity floods the market, US indices will see new highs. If the present positive correlation of the US stock market with the cryptocurrency market preserves, BTC has all chances to head towards new highs as well. That being said, we recommend holding “long” positions in BTC with the nearest target at $ 75,000.