Bitcoin traders advised caution as prices fell toward $50,000 for the first time in two weeks, while the options market braced for uncertainty ahead of a record $6 billion contract expiration on Friday.
Markets were lifted on the news of Microsoft's decentralised identification network, which had been deployed on Bitcoin's main net. The four-year-old project aims to make it easier for organisations and individuals to be found online without relying on a third party.
At 3:19 p.m. ET on Thursday, the largest cryptocurrency was unchanged to marginally lower at around $52,100. Prices had previously dropped to as low as $50,360. Since March 8, Bitcoin hasn't traded below $50,000, a long way from its all-time high of $61,000. Bitcoin (BTC) trading around $53,488,66 as of 03.10 Pm IST on Friday.
In the press release authors at the General Service Administration (GSA) of the United States government are gushing about "cryptocurrency spring fever." It's possible that the agency's decision to auction off more than $300,000 worth of bitcoin next week isn't a coincidence.
In the bitcoin options market, there's also the monthly expiration on Friday. Analysts also predicted that if the price drops to about $44,000, the max point - where buyers have the most to lose and sellers have the most to gain - would occur.
Despite the fact that Bitcoin's bullish momentum has waned, some derivatives metrics, such as a bullish futures premium and a neutral skew, indicate that the price will not fall below $50,000.
The GSA is offering commission-free bidding on 6.79 BTC, divided into 10 lots, according to an announcement posted on the agency's website on Wednesday.