(WEEKLY NOTION): A Historic Week for Cryptocurrencies as Tesla Invests $1.5 Billion Into Bitcoin And CME Lists Ethereum Futures

BTC/USD (as of Feb 12, 2021, 12.05 p.m., GMT +8)

Source: Yahoo Finance

ETH/USD (as of Feb 11, 2021, 12.10 p.m., GMT +8)

Source: Yahoo Finance

DOGE/USD (as of Feb 11, 2021, 12.10 p.m., GMT +8)

Source: Yahoo Finance

This week, the world of cryptocurrencies received a strong boost when Tesla announced a $1.5 billion purchase of bitcoin and future plans to accept bitcoin as a mode of payment. It was the catalyst that the cryptocurrencies bulls needed to surge ahead, and Bitcoin and the other altcoins recorded stellar performances. Let’s take a closer look at BTC/USD, ETH/USD, and DOGE/USD.

BTC/USD

Bitcoin hit a new all-time high of $ 48,142 when Tesla announced its $1.5 billion bitcoin purchase. While it made way for many speculations if other institutional investors such as Apple will follow Tesla’s lead, on-chain metrics have reported that retail investors are also looking to ride this wave.

Although hitting the $50,000 appears within reach for Bitcoin in the near future, Michael Novogratz, who is the Chief Executive Officer of Galaxy Digital, is even more optimistic and believes that Bitcoin can hit $100,000 by end of this year.

At the time of writing, the price is at $44,767.21 (above its 50-day Moving Average), with a bullish reversal indicated by the Moving Average Converge Divergence (MACD).

ETH/USD

Upcoming star in the digital currency world, Ethereum, is clearly benefitting from Bitcoin’s bull run as it hit a new all-time high of $1,814.16. This is indeed a great achievement, especially after hitting $1,600 for the first time last week.

This week is also a historic one for Ethereum as the Chicago Mercantile Exchange (CME) listed Ethereum futures on its exchange, alongside Bitcoin. On its first day of trading, there were nearly 400 contracts traded on CME, as reported by Business Insider.

Analyst John Isige believes that the future looks bright for Ethereum and is expecting the bulls to achieve $2,000 and even beyond, in the coming days. This is also supported by the positive buying trend spotted among the whales. Whales, as the name indicates, are individuals or institutions who hold a large number of cryptocurrencies.

Presently, the price at the time of writing is at $1,736.08. The MACD indicates a bullish reversal, and the Relative Strength Index has dipped to 44, an attractive time for buyers.

DOGE/USD

Dogecoin is receiving its share of the limelight, after tweets from Elon Musk and Snoop Dogg, caused the market cap of Dogecoin to soar above $10 billion. Forbes also reported that its value also rose by 359% in four weeks. Meanwhile, in China, it appears that the search volume for Dogecoin hit an all-time-high on Baidu.

So, what lies ahead for Dogecoin? Isige believes that after its massive rally, a correction could be underway to $0.045. However, he also believes that with the attention it is garnering in China, it could propel Dogecoin to new all-time highs.

Currently, the price at the time of writing is at $0.0728 and remains volatile. The MACD shows a tight struggle between the bulls and the bears to take control, while the RSI stands at 46 presently, which reflects neither an overbought or oversold condition.

CONCLUSION 

It was once again an incredible week for most of the cryptocurrencies. Against the backdrop of rising inflation expectations in view of President Biden’s massive stimulus package of $1.9 trillion, the world continues to search out potential hedges against inflation and it is clear that many eyes are now on Bitcoin. Can this rally continue and if yes, just how high will it go? If Elon Musk’s tweets are anything to show, it is proving that FOMO sentiment can easily be heightened by words from popular figures. It is getting clear that the old traditions of how things are done in the financial world are now changing. For the moment, one thing seems clear: Tesla’s $1.5 billion investment in Bitcoin is a massive game-changer for the cryptocurrency world, and the magnitude of its ripple effect can only be seen in the days ahead.

*For those of you who are celebrating the Lunar New Year, wishing you a Happy Chinese New Year!

FOLLOWME BTC/USD Overall User Sentiment (as of Feb 11, 2021 at 12.05 p.m.)

Short – 65.54%

Long – 34.46%

BTC/USD (as of Feb 11, 2021, 12.05 p.m., GMT +8) - $ 44,767.21

ETH/USD (as of Feb 11, 2021, 12.10 p.m., GMT +8) - $ 1,736.08

DOGE/USD (as of Feb 11, 2021, 12.10 p.m., GMT +8) - $0.0728