Bitcoin's Weekend Rally

This past weekend, bitcoin hit a new all-time high reaching over $61,500. The move is another historic milestone — so far 2021 seems like a year of milestones for bitcoin. The price also briefly meant that bitcoin’s market cap hit $1.14 trillion, which means bitcoin is closing the gap with Google’s $1.385 market cap.

Why is this happening? Basic supply and demand is playing out here:

Firstly, there is continued institutional investment and interest in bitcoin and crypto from multiple corners of the retail (ie you,) and institutional financial worlds.

On Friday, MicroStrategy, an enterprise software company that is famous for building a small war chest of bitcoin announced acquiring another $15 million (or 262 BTC at Friday’s prices more of bitcoin). This flywheel of established financial players entering the market is starting to move faster.

A second possible reason could be because of the federal government approved stimulus package. The Federal Government of the United States approved and started mailing checks as part of the $1.9 trillion stimulus package that was passed last weekend. This means that there is more money in circulation; more spare cash lying around for people to invest in crypto.

Cryptocurrencies are also currently constantly dominating the headlines. This includes the traditional press, following the $69 million dollar sale of Beeple’s artwork at Christie’s.

More exposure for crypto means more adoption, more price surges.

While the weekend bitcoin rally lost steam on Monday, this latest 10% pullback looks like a classic consolidation flag that will ultimately push the markets higher and maintain the current bull trend. A third 30% correction will likely happen after we hit or approach $70k. The good news is that $50k becomes resistance for that pullback. Incredibly exciting times.

This is an exciting time to be alive. Invest wisely and ask lots of questions!

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