On Thursday, bitcoin reached a record of $49,000. Traders and analysts believe the surge in price is caused by the growing interest of investors in this digital currency. The news that MasterCard announced has attracted prominent players into the cryptocurrency market. It was revealed that MasterCard would allow merchants to receive payments in cryptocurrencies.
However, many analysts think that the price will continue to grow only for a short period of time. Senior content editor at OKEx’s research arm OKEx Insights, Adam James, said that it is tough to be bearish on bitcoin at the moment. He explained that it is unnecessary to look too deeply of the fundamental metrics and technical indicators “to feel that.”
Katie Stockton, a technical analyst for Fairlead Strategies, thinks that the near term upside hurdle will be higher at about $53,000; And that overbought and oversold activity could support about two months of price accumulation.
However, a trader at market maker GSR, John Kramer, believes that in the long run, bitcoin might reach $100,000 by the end of the summer.
On Thursday, the Ethereum also went up, trading around $1,769.03 in 24 hours, reaching 2.75%. Ethereum is the second-largest cryptocurrency. Analysts do not attribute Ethereum’s rally to merely following the Bitcoin surge; instead, they believe the spike is driven by the vastly growing decentralized finance sector.
Managing director at eToro, Guy Hirsh, said, “As these projects continue to gain in popularity, we will likely see increased interest in ether. It would not be surprising to see it make a run at $2,000 soon.”
For the time being, Ethereum competitors such as Cardano, Polkadot, Solana, and Algorand have grown significantly. Many believe that the growth indicates the frustration regarding the high gas feed on the Ethereum blockchain. Gas is, in fact, an internal pricing unit for running transactions on Etherium.