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Bitcoin Surges Back Above $50k, Crypto Market Cap Tops $2 Trillion Again

Tyler Durden's Photo
by Tyler Durden
Monday, Aug 23, 2021 - 08:55 AM

On the heels of news that Coinbase will be buying more crypto for its balance sheet (and reinvesting profits going forward), crypto market sentiment also benefited from PayPal's announcement that it will allow U.K. customers to make crypto transactions, bitcoin is rapidly pushing back towards the $1 trillion market cap level, and is back in 9th position among the largest global assets...

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As the largest cryptocurrency by market cap breaks back above $50,000 for the first time since May's Musk-driven massacre...

Source: Bloomberg

This rebound should not be a total surprise as we have seen this before in recent years as the price of bitcoin dropped notably below its stock-to-flow-implied valuation...

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In fact, the creator of that model sees a 'worst case scenario' of $63k by October and rising beyond...

He's not alone:

“We’re seeing some very bullish signs here,” said Vijay Ayyar, head of Asia-Pacific with crypto exchange Luno in Singapore.

Bitcoin could “test all-time highs again” after pushing past levels that some had seen as major challenges.

Bitcoin is not alone as Ethereum, which we noted was primed for a surge, has pushed back above $3350 - also its strongest since May...

The hash rate - a measure of the computational power being put toward the Bitcoin network - has also rebounded from early-July lows, in a sign that the sector is adjusting after disruptions caused by China’s clampdown...

On-chain analytics firm Glassnode revealed late last week that "Bitcoin exchange flows have returned to a dominance of outflows through August as investors withdraw BTC.”

“The market has transitioned through a number of phases of exchange flow dominance over the last year, with outflow dominance last seen in late 2020.”

This ties in with a popular narrative focusing on accumulation at current price levels, suggesting overwhelming faith in higher prices still to come.

Finally, as Decrypto.co reports, Deloitte's annual global blockchain survey has found that 76% of finance professionals think that digital assets “will serve as a strong alternative to, or outright replacement for, fiat currencies in the next 5–10 years.”

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