Why Bitcoin is stuck at the $ 50,000 mark

MOSCOW, 2 SEP – PRIME. The calm of the late summer that has swept Wall Street is dreaming even for bitcoin, which was stuck at the $ 50,000 mark in the midst of its August rally. The cryptocurrency closed at $ 48,279.42 on Wednesday and climbed slightly above $ 50,000 on Thursday.

Cryptocurrencies

Expert explains why cryptocurrencies will “fall to zero”

Bitcoin is famous for its volatility. From January to mid-April, its price more than doubled, after which it fell by 52% in three months, and jumped by about 65% in July-August.

So why is Bitcoin stalling now? First, investors are starting to look closely at other assets in the crypto market.

According to CoinShares, the inflow of investments in funds with ethereum in August amounted to $ 22.4 million, and in funds specializing in cardano (a blockchain platform similar to ethereum) – $ 18.7 million. Ethereum rose 10% to $ 3,730 on Wednesday, the highest level since May 15. Since the beginning of the year, the price of Ethereum has already increased fivefold.

The non-fungible token (NFT) quotes that jumped in the spring are showing rapid growth even now, diverting funds from bitcoin. NFTs are digital assets that differ from bitcoin in that each token is unique.

According to DappRadar, over the past 30 days, OpenSea, the largest NFT exchange, has trading volume of $ 3.5 billion, while from its inception in 2016 until August, the exchange’s total trading volume was only about $ 1 billion.