FxPro Financial Services Ltd | Feb 08, 2021 09:54AM ET
Over the weekend, Bitcoin once again reminded crypto market participants of the likely continuation of its growth. The coin was able to overcome the important round level of $40K, but as it approached $41K, sellers' pressure intensified.
And then the trigger came. Tesla (NASDAQ:TSLA) suddenly announced that it had previously bought $1.5 billion worth of bitcoins, pushing the price to update historical highs of $43K. Even more optimistic is the announcement that the company will consider accepting bitcoin as payment.
The total capitalization of the crypto market now exceeds $1.25 trillion. Although Bitcoin's dominance index fell dramatically by almost 9% during the month, market participants consider this great news, as it indicates a high interest in altcoins amid the overall capitalization growth. Indeed, most of the top 100 coins are now in the green zone.
Bitcoin's new growth outbreak is related to the speculation that more companies may follow Tesla's lead, kicking off an accelerated widespread adoption of cryptocurrency as a means of payment. Positive moves in this direction have led to growth in the crypto market before, but at this stage, the correlation between the traditional market and cryptocurrencies may be particularly strong.
The recent growth in the price of Ethereum, which was able to break its all-time high and consolidate around $1,600, led to an increase in online commissions to $25. Miners' revenues have risen on the back of increased demand, and they are also the first to execute those transactions for which there is a higher fee.
The FxPro Analyst Team
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