Bitcoin survives profit-taking and receives support from Musk and Mastercard again
By Noemi Jansana / Alejandra Zamora
Date: Tuesday 26 Oct 2021
(Sharecast News) - Bitcoin has left behind the setbacks of the past weekend, by achieving 5% gains on Monday that are being maintained on Tuesday, with the largest asset by market capitalization trading around $62,500. Tesla and Elon Musk boosted the price by declaring the company might return to accepting payments in Bitcoins. Mastercard contributed to the rise as well with the announcement that it will integrate into its payment network the option to buy, sell and hold cryptocurrencies through a fusion with the Baktt platform.
As for Tesla, in its September quarterly filing with the U.S. Securities and Exchange Commission (SEC), the company stated that it "may restart the practice of transacting in cryptocurrencies in the future," suggesting that Tesla is considering resuming support purchases made with digital assets, as 'CoinTelegraph' reported.
This optimism has carried over to the rest of the market, with rises for Ethereum up to $4,200. Overall, the top 10 cryptocurrencies by market capitalization are looking good, with rises between 1% and 3%. Total capitalization has climbed back above the $2.6 trillion mark.
However, "the pullback took a little froth out of the market after the launch of the ProShares ETF saw it hit record highs," says Craig Erlam, an analyst at Oanda. "There still appears to be momentum with the rally and cryptos favourite billionaire gave his backing to the usual three once more which may be contributing to their success at the start of the week, to the disappointment of other coins hoping to get in on the action," he adds.
Experts warn that the declines are merely an opportunity to buy Bitcoin and other assets at a better price. Others also point out that the decline is due to a more-than-expected profit-taking move after the hefty rises of around 50% in October.
"The 'crypto' is now targeting $100,000, something that seems within reach by the end of 2021," notes Naeem Aslam, head of analytics at AvaTrade. "More money is flowing into the digital sector as more investors access exchange-traded funds (ETFs). The $72,500 and then $89,000 levels are near-term resistance levels," he adds.
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