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Bitcoin Price Hits New Record High Near $8,400; is Market Ready to Make its Next Move?

Last Updated March 4, 2021 5:01 PM
Joseph Young
Last Updated March 4, 2021 5:01 PM

Since November 20, the bitcoin price has increased from $7,700 to $8,315, stabilizing in the $8,200 region throughout much of Tuesday’s trading before surging to a new all-time high of $8,380. Analysts expect bitcoin to initiate new rallies in the short-term, given the market’s confidence in bitcoin’s short and mid-term growth.

Tether Leads to Brief Bitcoin Price Dip

Earlier today, as CCN.com reported, Tether Treasury wallet experienced a major security breach, leading to the loss of nearly $31 million. In an official statement, the Tether development team announced:

“Yesterday, we discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker. $30,950,010 USDT was removed from the Tether Treasury wallet on November 19, 2017 and sent to an unauthorized bitcoin address.”

While the performance of Tether should not impact the price of bitcoin and other cryptocurrencies in the market given that it is not a fork of a specific cryptocurrency, it triggered bitcoin price to experience a brief dip, as it fell from $8,100 to $7,700.

Several traders and experts including Blockstream CEO Adam Back revealed that they have bought the dip, as the price of bitcoin demonstrated a minor correction. “bought that mini-dip. People are way to jittery,” said  Back.

Since then, within a nine-hour span, the price of bitcoin has increased from $7,700 to $8,380, by over 7.5 percent.

Overstock CEO: Fiat Currency is Declining

Patrick Byrne, the CEO of Overstock, a major electronics retailer, recently explained in an interview with Fox Business that the global fiat currency system is on a decline and robust stores of value such as bitcoin and gold will take over the fiat currency system in the long-term.

“The real question is not how high can bitcoin go. The real question is how low can fiat currency go—and at the end of the day all fiat currencies have gone to zero and that’s because they end up with irresponsible money printing,” added  Byrne.

Institutional and retail investors envision a similar long-term future of the global finance sector and monetary system, given that the majority of institutional investors have already finalized their plans to invest in bitcoin upon the launch of CME’s bitcoin futures exchange on December 11.

“We have all these currencies since Bretton Woods, fluctuating against each other, and maybe the dollar hasn’t gone to zero against these currencies but all of them have gone down 95% … versus something that they can’t control like … gold and bitcoin. So bitcoin may be on its way to a million for all we know,” Bryne said.

Currently, the bitcoin price is approaching the $9,000 mark, without the involvement of institutional retailers and large-scale hedge funds, solely through the increase in mainstream adoption of bitcoin as a store of value. As tens of billions of dollars move into the space in the upcoming months, the liquidity and daily trading volume of bitcoin, which are already higher than that of Apple, the most liquid stock on earth, will further increase.

Featured image from Shutterstock.