Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Bitcoin rally falters just short of $50,000 as investors take profit

Currencies Feb 15, 2021 03:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A collection of bitcoin (virtual currency) tokens are displayed in this picture illustration
 
MA
+1.30%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MS
+0.66%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BK
+0.22%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
+3.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BTC/USD
+2.81%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
+5.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Tom Westbrook

SINGAPORE (Reuters) - Bitcoin stalled just short of the $50,000 mark on Monday and other cryptocurrencies slipped, as investors took profit from a record-breaking rally that is being driven by a worldwide shift in investor and public attitudes towards digital assets.

Bitcoin fell as much as 5.6% to $45,914 in Asian trading hours, after having posting a record high of $49,714.66 on Sunday. Rival crypto ethereum slid more than 8%, though both later pared some of those losses.

The dip, for now, taps the brakes on a surge that has vaulted the cryptocurrency from the fringes of finance to Wall Street, as big investors and large companies have begun to take the digital asset seriously and started to buy a lot of it.

Bitcoin is up about 20% in the week since electric carmaker Tesla (NASDAQ:TSLA) Inc announced it had $1.5 billion in bitcoin and would accept the currency as payment. It has gained more than 60% for the year to date and more than 1,100% since last March.

"There's this unadulterated wave of big players (buying) that has continued to push the price higher," said Chris Weston, head of research at Melbourne brokerage Pepperstone. "We might be seeing one or two big funds just cashing out," he said.

"The big question is: OK, you want to buy the pullback, but how big is the pullback that we are talking about?"

Lunar New Year holidays in Hong Kong and China also kept a lid on moves in Asia, while a tweet from Tesla boss and crypto advocate Elon Musk appeared to weigh on the price of dogecoin, which he had previously promoted.

"If major dogecoin holders sell most of their coins, it will get my full support," he tweeted.

Dogecoin, a dog-themed currency created as a joke has been volatile in recent weeks owing to a number of Musk tweets referring to it.

It has dropped 18.3% to $0.0536 in the past 24 hours according to CoinDesk. Ethereum last sat at $1,740, about 7% below last week's record high of $1,879.

GO WEST

Bitcoin's rise has a cryptocurrency that is still hardly used for transactions on the verge of $50,000 - a far cry from software developer Laszlo Hanyecz's 2010 purchase of two pizzas for 10,000 bitcoins.

But in contrast to previous speculative bitcoin rallies, driven by traders mostly in Asia, gains in the past few months have been driven by a seismic shift in U.S. investors' attitude.

Tesla's investment followed multimillion-dollar bitcoin purchases by business software firm MicroStrategy and a number of Wall Street fund managers, such as billionaire Stanley Druckenmiller, sounding positive on the asset.

Bloomberg reported on Saturday that Morgan Stanley (NYSE:MS)'s investment arm is also weighing a bet on bitcoin.

Meanwhile, bitcoin has made strides toward being a medium of exchange, with PayPal allowing customers to use bitcoin at its merchants and Mastercard (NYSE:MA) preparing to permit cryptocurrency use across its vast network.

Bank of NY Mellon (NYSE:BK) last week said it formed a new unit to help clients own and trade digital assets and Japanese financial conglomerate SBI Holdings is in talks with foreign firms for its own crypto joint venture.

"In the crypto space, these institutions coming to the party are seen as steps towards acceptable and possible usage," said Michael McCarthy, chief strategist at CMC Markets in Sydney.

Bitcoin has been the most prominent beneficiary, he said, but price moves in other cryptocurrencies - such as EOS, which has more than doubled since late December according to CoinDesk - show that the door remains open to rivals.

"The race is on amongst those candidates," he said.

Bitcoin rally falters just short of $50,000 as investors take profit
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
antonio jose gonzalez perez
antonio jose gonzalez perez Feb 14, 2021 10:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Este pequeño retroceso del 5.6% es para el impulso al tope de los 50000$
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email