The ongoing price rally in the Bitcoin market paused on Friday as traders decided to secure their short-term profits against the strengthening US dollar, even though a long-term outlook showed the flagship cryptocurrency in a vital state.
The BTC/USD exchange rate dropped to an intraday low of $46,845 during the European session, according to data fetched from Coinbase Pro, a US-based trading platform. Nevertheless, the downside correction accompanied a meager daily volume, showing a weaker bearish bias as more and more analysts anticipated Bitcoin to hit $50,000 this week.
That is due to a flurry of optimistic catalysts that appeared this week.
On Monday, Fortune 500 company Tesla announced that it had purchased $1.5 billion worth of bitcoin after dumping about 8-10 percent of its cash reserves. The move validated the cryptocurrency’s most bullish narrative: that of a depreciating US dollar and how it [Bitcoin], a scarce asset, can protect people against such devaluations.