16.02.202116:43 Forex Analysis & Reviews: Bitcoin breaks above $50,000

Following a significant plunge of 3%, the main cryptocurrency hit a new all-time high of $50,500. On Tuesday, the asset gained in value by 5%, bringing its total capitalization to $928 billion.

Notably, this followed a local decline in the entire crypto market, which caused losses for hundreds of thousands of traders around the world. After falling by $4,000, the main digital asset pared its losses, setting a new capitalization record. For now, the price of bitcoin is trading at around $48,000. However, this is the only major crypto asset that is showing positive dynamics.

Ethereum did not respond to bitcoin's rally but continued to decline in price. At the time of preparing this material, ether was trading in the area of $1,770 with no signs of recovering.

The situation with the Ripple's token is rather similar. The cryptocurrency has slipped to the $0.53 mark. However, there are already some signs of upside momentum, and XRP is likely to gain in value.

Litecoin has halted growth at the level of $210. Despite a slight intraday upward movement, the asset will hardly be able to boast of a stable and systematic increase in price.

Given the current performance of the cryptocurrency market, we can conclude that the price correction has affected all digital assets. Nevertheless, bitcoin managed to recover and resumed its uptrend amid the news on large investments from financial giant Morgan Stanley. The rest of the assets failed to resist and consolidated at the levels of the previous week.

A new bitcoin's record high may well trigger growth in other cryptocurrencies. However, digital assets barely reacted to the news about fresh investments in the first cryptocurrency. In addition, after hitting the previous all-time high, bitcoin pulled back down by 3%, which could happen again. But this time, such a pullback may have a far more severe impact on the entire market.