The value of bitcoin is again rising on Tuesday, February 16. The first cryptocurrency adds 4% per day and is trading at $49,023.
According to the CoinMarketCap portal, bitcoin reached $49,605, and on the largest cryptocurrency exchange, Binance, it rose to $49,541 in terms of the trading volume
Thus, bitcoin is again trying to storm the most important psychological and technical level of $50,000. As soon as the reference digital currency takes this peak, the buying momentum will increase not only for bitcoin but for the entire crypto market as a whole.
Likewise, altcoin quotes also moved up. The total capitalization of the digital asset market in the light of these events again soared to $1.5 trillion. Elon Musk's statement on the purchase of bitcoins for $1.5 billion seemed to mirror the statement of Fed Chairman Jerome Powell about his readiness to continue stimulating the US economy.
These two high-profile events delayed the start of an extensive market correction, which is now clearly overheated, as indicated by technical indicators. However, this overheated state does not in the least interfere with its growth. So, the RSI index for the BTC/USD pair on the daily chart shows a transition to the overbought zone, but this kind of dynamics remains moderate so far.
Elon Musk loves being a growth driver and has once again made a big announcement, once again honoring Dogecoin. Tesla's CEO and mastermind suggested that the whales buy out Dogecoin in exchange for their support for the project. It is not yet clear why Musk would make such statements, but it should be admitted that these news feeds cause the most positive vibrations in the crypto market.
In general, it is worth noting that the demand of institutional investors for the most popular cryptocurrency is growing rapidly, and the production of new bitcoins is not keeping up with these rates. Institutional investors have already bought 3% of all Bitcoin, and the 24 largest companies have about 461,000 bitcoins in their accounts, which is equivalent to $21.2 billion. These companies have lined up with new companies that also intend to enter the cryptocurrency market.
Recall that this year, MasterCard and Bank of New York are planning to provide their clients with the opportunity to make payments and open deposits in cryptocurrency. Deutsche Bank also intends to provide access to cryptocurrency in conjunction with traditional banking instruments. Morgan Stanley, the largest financial holding in the United States, already owns almost 10% of shares in MicroStrategy and plans to provide its clients with the ability to store and trade cryptocurrencies in the future.
Globally, Bitcoin's corporate investment capital is roughly $10 trillion. If we imagine that each company wants to invest about 3% of its funds in bitcoin, then the demand created in this way (and this is about $300 billion) will exceed a third of the current cryptocurrency capitalization.
If institutional investors continue to buy bitcoin, then this will inevitably lead to its shortage. The resulting clear gap between supply and demand will provide new growth in the value of the digital coin, which can easily reach the $100,000 mark in 2021.
