Bitcoin experienced a rough period earlier in the year, but at press time, the currency is trading for just under $11,700, and is at the highest point its been in roughly one year.
Bitcoin Is At Its Strongest Point in 12 Months
2019 was relatively shaky for the world’s leading cryptocurrency, trudging along during the first three months of that year before spiking into the $5,000 range by the time April came along. By mid-summer, the currency had shot up to well over $13,000, but eventually things took a nasty turn, and the asset fell into the low $7,000 range by the time 2019 was over.
Now, however, bitcoin appears to have gotten some of that momentum back and is back on track to reaching new heights. This July saw the currency reaching its highest point in approximately 12 months.
Tim Enneking – the managing director of Digital Capital Management – stated earlier in the year that bitcoin and stocks were extremely correlated, and that the digital currency would not be able to reach the $10K mark without losing some of its attachment to standard assets. However, it appears that some of that correlation has died down as of late, which explains why the currency has managed to shoot up nearly 30 percent over the past two weeks alone.
Add to that the dollar at record lows and gold at record highs, and BTC has a lot of healthy tailwinds right now.
Joe DiPasquale of Bit Bull Capital offered similar sentiment, though he believes Ethereum had something to do with bitcoin’s increasing health and surges in the crypto market in general. He explained:
We can’t ignore the role played by Ethereum in resurrecting market enthusiasm. The DeFi space kicked off this change in sentiment with projects like Compound and Balancer doing well, both in terms of adoption and the market. Following increased demand, ETH started looking alive and posted double digital gains, outperforming bitcoin and other alts roughly two weeks ago. These developments also resulted in positive sentiment returning to the market and helping bitcoin rally past $10K.
Banks Have Something to Do with It
Jack Tao – CEO of crypto trading platform Phemex – commented that the recent healing of divisions between centralized and decentralized finance is likely doing the trick. Banks can now offer crypto custody services to customers, which may be the reason why bitcoin is jumping in price. He mentions:
There’s always a pool of investment money that moves around, navigating through different assets and markets seeking the best opportunities to make profits. Any time one area doesn’t do well or is projected to decline, the money simply shifts into a more promising sector. With the high levels of quantitative easing in the U.S., concerns about inflation compel investors to find alternatives such as gold or opportunities within the crypto field.