Bitcoin price increases over $ 50,000 and then withdraws

The world's largest cryptocurrency recently fell by 0.2% to 49.201 USD. It had increased to $ 50,562 because investors had bet that the prospect of further economic issues in the USA would lead to further profits, and more mainstream financial service companies made steps into the aspiring asset class.

Bitcoin has risen by 82 % since it had reached an annual $ 27,700 in January.

According to Edward Moya, Senior Market Analyst at Oanda in New York, the price decline was mainly due to profit from the profits, which also referred to a report that part of the Bitcoin mining from China on Tuesday could go off the network.

In the meantime, the price of the competing cryptocurrency ether recently increased by 1.97% to $ 3,305. The virtual coin has increased by 91% since it fell to less than $ 1,740 last month.

The cryptocurrency is recovered because some more established financial service companies provide their customers access to virtual coins. PayPal Holdings Inc said on Monday that customers in Great Britain will enable, sell and hold Bitcoin and other cryptocurrencies from this week.

moya said that the fears of taxation of capital gains have caused some dealers to keep cryptocurrencies as a long -term investment, which means that a certain volatility is taken away from the market.

"New investors are the key to this recent Bitcoin rally and all the signs that they feel at a high risk," he said in an email and added that Bitcoin could "experience a quick upgrade here and could not hesitate to run to an appetite to $ 60,000". For risky assets, remain intact. ”

Others also believe that the upswing could go even further if more private investors return to the market.

"When Bitcoin was last $ 50,000, the Google trends (tracking website with Bitcoin searches) were much higher than now," said Marcus Sotiriou, a seller at the British Digital Asset Broker Globalblock, in a note.

"This indicates that the retail euphoria has not yet entered the market and Bitcoin has a long way to go in this market cycle."

(Reporting by Anna Irrera in London and Karen Pierog in Chicago; Editor of David Holmes, Alison Williams and Jonathan Oatis)