Bitcoin Recovers From Dip to Set Record High Close to $50K
Bitcoin printed new lifetime highs near $50,000 this morning, having crowded out excess bullish leverage in the derivatives market with a swift price drop on Monday.
The top cryptocurrency by market value clocked a record high of $49,950.93 at around 08:00 UTC Tuesday and was last seen trading near $49,280, representing a 2.8% gain on the day, according to CoinDesk 20 data.
Prices had fallen Monday by $3,000 to below $45,926 during the early Asian trading hours, triggering nearly $392 million-worth of long liquidations in the derivative market.
While the dip was short-lived, a breakout above $50,000 has so far remained elusive. Bitcoin now needs the help of cash/spot buyers to rise above $50,000, according to Patrick Heusser, head of trading at the Swiss-based Crypto Finance AG.
"Everyone in derivatives have done their job, and they look exhausted," Heusser told CoinDesk, adding that prices could consolidate between $44,000 and $50,000 if spot buyers continue to sit on the fence.
The cryptocurrency's recent rally from $40,000 has been primarily driven by leverage on derivatives, and as spot market volumes on institutional-focused exchanges such as Coinbase Pro have cooled, as discussed on Monday.
Notably, the Coinbase premium indicator, which measures the spread between Coinbase Pro’s BTC/USD pair and Binance’s BTC/USDT pair, continues to report negative values, as noted by Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, on Tuesday. The negative premium indicates weak institutional inflows.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
