By CCN: The bitcoin price zoomed across the psychologically-crucial $8,000 mark as the flagship cryptocurrency continued to claw back the losses it incurred during the recent market downturn.
Bitcoin had languished below $8,000 for much of the past three days, following a brutal correction that smacked BTC/USD as low as $7,432 on Bitstamp, more than 18 percent off the year-to-date peak of $9,096 it set on May 30.
However, shortly after 12 pm ET, the bitcoin price began to trend upward, and at 12:16 it eclipsed the $8,000 mark. That triggered another small bump, and by the time of writing, BTC had popped as high as $8,100 to post a four-day high and pump its market cap up to $143 billion.
Other top cryptocurrencies enjoying bullish pivots included litecoin (+15.19%) and tezos (+14.84%), though most coins gained close to 5% over their previous-day levels.
Altogether, the crypto market cap rose to $258.7 billion.
But as the parabolic cryptocurrency market rally kicks back into high gear, we’re left with an uncomfortable question: Can it last?
Two days ago, crypto analyst Willy Woo published some alarming data that suggested the bitcoin recovery had already gotten out of hand.
Writing on Twitter, he warned that BTC’s market price had ballooned far beyond organic levels, approaching heights not seen even during the 2017 bull market mania.
Absent organic capital inflows from investors, he concluded that the recent jump above $9,000 was powered by “short term trade activity” and not sustainable.
“This is a quant fund driven short squeeze devoid of any true investor volume,” he wrote. “I’m awaiting this exchange driven pump to blow off, a proper retrace, and only then do I think real investor flows will come in and drive the true organic bull market.”
Even more notably, the bitcoin price managed to pound past $8,000 even as India, the world’s second largest country with more than 1.3 billion residents, introduced a bill that would place an outright ban on cryptocurrency ownership.
The bill, as CCN reported, would criminalize all cryptocurrency use and ownership. Current investors would be forced to dump their holdings within 90 days, and offenders would face massive penalties including decade-long jail sentences.
There was a time when such reports would have triggered instant price crashes. “China bans bitcoin” rumors were once so devastating to the market that they inspired a meme.
Now, though, many analysts – including VanEck Digital Asset chief Gabor Burbacs – believe that the industry has grown so strong that an outright ban would spur further adoption.
Developing…Check back for updates. Click here for a real-time bitcoin price chart or here to read CCN’s latest crypto market analysis.
Last modified: March 4, 2021 2:35 PM