Bitcoin Consolidates Around $58,000 as Recent Rally Pauses
Bitcoin Price Rally Halts
Bitcoin has largely been trading in a consolidation mode for the past week as market participants expect new developments over the crypto space that would inject fresh liquidity. Bitcoin price slid 5% on Sunday following an attempt to break the $60,000 barrier. Heavy selling pressure awaited at the $60k mark and the buying momentum could not pierce through.
Yesterday, the price dropped by 5.5% going from a high of $58,700 to a low of $55,500. Recently, bitcoin has been showing signs of weakness as the rally lost its steam over the past few days. Investors’ concerns over high stock valuations on the back of rising bond yields and a pick-up in inflation could have ricocheted in a decreased risk appetite in the cryptocurrency market.
Currently, the price is hovering around $58,800 per single bitcoin as the whole crypto market is taking a breather which allows market participants to look back and assess the situation. This month marks another big step towards mainstream adoption as more institutional players joined the cryptocurrency movement. As the market cools off from the recent breakneck rally, the crypto market has now onboarded Morgan Stanley, a large investment bank, and Visa, a giant payments technology company.
Morgan Stanley’s Green Light
A few days ago, Morgan Stanley gave bitcoin the green light and announced its plans to offer access to three bitcoin funds. While the access will be available to wealthy clients only, the move marks substantial progress towards bitcoin acceptance by the investment banking industry. In addition, Visa’s CEO Al Kelly, recently revealed that the payments company plans to support payments in bitcoin on its global network that includes over 70 million businesses. The Visa announcement arrived a month after its rival, Mastercard, disclosed it will also open its network this year to support select cryptocurrencies.
All in all, even with the current market pause, bitcoin has enjoyed 27% growth this month and it also broke above $60,000 two times.