Santa Claus Rally Sends Bitcoin beyond $50

First Mover Asia: Santa Claus Rally Sends Bitcoin North of $50K Ether also sees some holiday cheer; polygon and terra sparkle with record highs.

Market moves: The crypto market cheers for a “Santa rally” as bitcoin crossed a key price level at $50,000.

Prices

Bitcoin (BTC): $50,691 +3.9%

Ether (ETH): $4,104 +2.8%

Markets

S&P 500: $4,725 +0.6%

DJIA: $35,950 +0.5%

Nasdaq: $15,653 +0.8%

Gold: $1,808 +0.2%

Market moves

Bitcoin, the largest cryptocurrency by market capitalization, on Thursday broke above $50,000 for the first time since Dec. 13. Major U.S. stock indexes also increased amid improvement in US consumer sentiment in December.

Trading volume, meanwhile, was low two days before Christmas. Recent data showed that bitcoin’s trading volume across major centralized exchanges was only slightly higher than a day ago.

Image Courtesy: CoinDesk

Other cryptocurrencies followed bitcoin’s bullish move like Ether’s price rose above $4,100 on Thursday, up increased by 3(+)% over the past 24 hours.

Crypto Twitter cheered for a so-called Santa rally for bitcoin. The oldest cryptocurrency by market capitalization struggled for more than a week to move above $50,000, while other alternative cryptocurrencies (altcoins) such as LUNA and MATIC rallied to record highs.

Year-end market wrap

Market Wrap Year-End Review: Bitcoin Peaks as Coinbase Goes Public: Tesla’s bitcoin acceptance helped to send the BTC price to an all-time high near $65,000 in April, almost unthinkable just a few months earlier. Coinbase’s direct stock listing marked the exact date of the market top.

From Tesla to Coinbase, bitcoin went up, then down

The bitcoin price broke above $50,000 in February after Tesla disclosed it had invested $1.5 billion into BTC.

The market reaction inspired a bit of opportunism on the part of one enterprising T-shirt vendor, who rushed to offer a T-shirt for $19.99 with the words “Elon’s Candle,” referring to the electric vehicle maker’s billionaire CEO, Elon Musk. The “candle” referred to the dramatic pattern that appeared on bitcoin’s price chart as a result of the Musk-fueled price pop:

The announcements helped propel bitcoin, the oldest cryptocurrency, toward a previously unthinkable $1 trillion market capitalization for the first time.

But from a professional price chart reader’s perspective, bitcoin appeared to be “overbought;” that term meant the market’s run-up had probably gone too far, too fast, and wasn’t justified by the underlying level of buying interest at the new, elevated threshold.

Crypto Shiksha

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