With Bitcoin Now Above $50k, Here’s How to Trade It

Feb 13, 2024

Bitcoin finally broke above $50,000 – and could see higher highs.

All thanks to a massive shift in investor sentiment, and fresh BTC ETF inflows. Plus, as noted by Investing.com, “Bitcoin’s best days are yet to happen as the ETF-driven market fuels fears of missing out (FOMO), Bernstein analysts said in a note. In this context, they believe BTC is well-placed to soar to new record highs.”

In addition, there’s speculation BTC could really take off heading into its halving event — where the BTC mining reward is cut in half to reduce the number of new coins entering the network. “If fewer Bitcoins are being made available, the price ought to rise, assuming demand remains constant or increases,” says. BitPay.com.

Not only could Bitcoin see higher highs, but so could miners and stocks in companies with massive holdings in the cryptocurrency.

Look at Marathon Digital (MARA), for example.

Over the last few weeks, the BTC mining stock exploded from about $16 to $27.34. From here, if MARA can break above resistance around $30, it could potentially test $40 next.

Or, look at Riot Platforms (RIOT), which jumped from $10 to $15.90, and if it can break above $20, it could test $25 next.

There’s even MicroStrategy (MSTR), which now owns about 190,000 BTC as of late December, with an average purchase price of $31,224. With BTC now above $50,000, that position is now worth about $9.5 billion. It’s a big part of why MSTR rallied from $450 to $717.65 so far. From here, if BTC can rally to higher highs, we wouldn’t be shocked to see MSTR near $1,000.

With potential FOMO trades coming in, there’s no telling how high BTC could run.

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