Insights

Why the Bitcoin price was bouncing back today

A famous CEO believes the crytocurrency can replace the US dollar.
The post Why the Bitcoin price was bouncing back today appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The price of Bitcoin (CRYPTO: BTC) was bouncing back on Tuesday, hovering around $48,700 as of this writing. That’s about a 5.1% increase over the past 24 hours, according to CoinDesk. Normal volatility could be the explanation, but there have been some interesting developments over the past 24 hours that could be contributing to today’s gains. 

So what

Block CEO Jack Dorsey is in the news this morning after saying that Bitcoin will eventually replace the US dollar. The dollar is widely considered to be the world’s reserve currency, and many countries have actually dollarized their economies, replacing local currency with American greenbacks. Therefore, saying that Bitcoin can replace the dollar is a bold statement.

However, anyone can make a bold statement, and Dorsey has long been known to be an ardent Bitcoin supporter. It will be interesting to see whether he will be proved correct in the future. But, generally, if demand for Bitcoin continues to grow, the price could increase in future days and months, as it is doing today.

One possible driver for demand could be an exchange-traded fund (ETF) based on the spot price of Bitcoin. On 8 December, WisdomTree Investments submitted amended paperwork to the Securities and Exchange Commission in the hope its WisdomTree Bitcoin Trust can gain approval. If it does, this is one potential catalyst for Bitcoin’s price.


Year-to-date returns for Bitcoin and the S&P 500. Bitcoin price data by YCharts

Now what

As the price of Bitcoin has gone up, some previously dormant Bitcoin wallets have started awakening, making investors wonder what’s going on. According to online crypto community Whale Alert, a Bitcoin address with 321 bitcoins just activated after sitting dormant since 2013. That’s a relatively small amount of bitcoins, but dormant accounts suddenly coming back to life has been an ongoing trend. It causes some to wonder whether these Bitcoin holders are finally firing up the ol’ wallets so they can cash out after record prices in 2021.

Unfortunately, there’s a lot of things that investors can’t be sure of today. We don’t know whether drivers (like ETF approval) will materialize. And we don’t know whether these old wallets intend to sell, which would hurt demand. It’s a good reminder that there are a lot of moving parts when it comes to cryptocurrencies like Bitcoin, which is why it’s healthy to try to see things from both sides before making decisions like investing or selling.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why the Bitcoin price was bouncing back today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bitcoin right now?

Before you consider Bitcoin, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bitcoin wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These 5 ASX shares grew revenue by more than 70% in the last year

Australia’s first physical crypto gift cards are now on sale for Christmas

Why is the Zip (ASX:Z1P) share price outperforming Afterpay today?

2 reasons why Bitcoin is down today

Bitcoin (CRYPTO:BTC) price dips again. Could it be set for a bounce?

Jon Quast owns Bitcoin and Block, Inc. The Motley Fool Australia’s parent company The Motley Fool Holdings Inc. owns and recommends Bitcoin and Block, Inc. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!