Bitcoin slips after weekend record highs near $62,000

The value of Bitcoin slipped on Monday, falling lower than $58,000 (€48,700), after its record-breaking weekend, when its price surmounted $60,000.

Despite the dip, investors are likely to remain optimistic in their outlook, as they predict inflation concerns and the recently signed US stimulus measures to push the price higher.

US President Joe Biden’s signing of a $1.9 trillion (€1.6 trillion) COVID relief bill in the US, which includes a $1,400 (€1,173) stimulus check for individuals, has increased confidence in financial markets, as spectators prepare for some recipients of the direct payment to invest it straight into shares, commodities, or indeed cryptocurrencies. 

Inflation fears have also increased the appeal of Bitcoin. For investors concerned about the impact of massive stimulus measures introduced by Governments, the appeal of Bitcoin as an inflation-proof safe-haven for funds is significant.  

On the other hand, as has been reported by Reuters, a potential cryptocurrency ban in India, which would criminalise the possession, issuance, mining, trading, and transferring of crypto-currencies, will likely have shaken investor confidence. 

The proposed ban, which Maltese cryptocurrency proponent, Jonathan Galea described as “a lost opportunity for India just when its economy was roaring ahead”, would allow investors a six month period to liquidate their crypto assets.

Bitcoin has exploded in value and popularity in the last years, as it has continued to lead the overall cryptocurrency market into dramatic gains. 

In January, the combined cryptocurrency market reached a market cap of $1 trillion (€820 billion) for the first time in its history.

Just over a month later, Bitcoin alone reached that milestone, and electric-car pioneers Tesla, helmed by Elon Musk announced its investment of $1.5 billion (€1.25 billion) into bitcoin, lending the cryptocurrency some much-needed legitimacy.