Bitcoin price viciously dips to US$51,000 after hitting $1 trillion market cap

Posted: 22 February 2021 10:27 am
News
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Bitcoin pulled back shortly after reaching a new milestone.

  • Bitcoin market cap hits $1 trillion
  • Federal reserve expects pressure on Bitcoin
  • Bitcoin rises 20% in one week

Bitcoin traded at lows of around $51,000 today, courtesy of a vicious drop, followed by a V-shaped recovery that’s still playing out at the time of writing.

The pullback comes shortly after the first time Bitcoin has crossed $1 trillion dollar market cap. Looking back over the last quarter Bitcoin’s market cap has risen over eight times from $188 billion to today’s all-time high of $1.084 trillion.

During the Bitcoin bullrun of 2017 Bitcoin maxed out at $325 billion underscoring the magnitude of this rally.

The strong recovery in play after such a jarring drop suggests that Bitcoin may have room to run yet.

Despite the pandemonium for Bitcoin there are those in financial markets sounding a voice of caution over the cryptographic asset. The New York Times has reported on the President of Federal Reserve Bank of Boston Eric Rosengren, who said he’s surprised Bitcoin has “continued to flourish” this long.

Rosengren went on to say that he believes there will be national digital currencies, pointing to both Sweden and China whose digital currency programs are well advanced. As a consequence of that “over time” he would expect “Bitcoin prices to come under pressure.”

Nvidia releases dedicated crypto mining GPU

One of the most influential tech companies has announced its intention to release a cryptocurrency mining chip (CMP). Nvidia has announced that it will release an adapted graphics card dedicated to Ethereum based crypto mining called a CMP

Graphics cards (GPUs), popular with gaming enthusiasts, have become a crucial element of the Ethereum and decentralized finance landscape. Over recent months prices for second hand GPUs have nearly doubled and orders for new cards are being limited, with orders being backfilled when available.

GPUs are also the go-to chip for vision based artificial intelligence technologies.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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