Bitcoin Approaches $50,000 as Investors Jump on Crypto Assets

Bitcoin, the world’s most dominant crypto asset rose above $45,000 on Tuesday morning as more institutional investors jumped on the rising trend following weeks of bearish trend after Elon Musk pulled the plug on Bitcoin and other crypto-assets.

Bitcoin gained 2.90 percent to $45.903.37 a coin on Tuesday to further establish price above the $45,000 resistance levels, up by over 59 percent from the $29,500 record low it traded on July 21.

“There seems to be a shift in the sentiment in the market compared to a few months back,” Ulrik Lykke, executive director at crypto hedge fund ARK36 stated via email. “We’ve recently seen some seemingly negative news coming out about Binance facing regulatory scrutiny that did not seem to influence the price a lot.”

On Monday Bitcoin break above the 200-day moving average, a long-term indicator of market health and has continued rising since then. Tuesday’s daily candle marks the first time bitcoin has closed above the long-term indicator since May 20.

Bitcoin’s daily volume rose to its highest for the month of August as trading activity backed by strong demand pushes its attractiveness among crypto investors up the chart.

“There was buying pressure from Coinbase, and I think the demand was from institutional investors,” said Ki Young Ju, CEO of the Korea-based blockchain analytics firm CryptoQuant. Ju also noted that based on the Kimichi Premium and other on-chain indicators, retail investors were mostly absent from bitcoin’s recent run.