Bitcoin is on a roll, today. The currency has rebounded from its recent drop to surge by roughly $500. At the time of writing, it is trading for over $10,300, marking a new high for the year.
Bitcoin Has Set a 2020 Record
The asset has undergone a period of hardcore change since 2020 began. It initially began the year trading at a measly $6,900, the lowest it had been in approximately one month. From there, it rose by $400 to reach $7,300 following political tensions between the United States and Iran. CME Group in Chicago, Illinois also announced that it would be unveiling its new bitcoin futures product trading options.
Since then, the world’s number one cryptocurrency by market cap has been jumping every few days until finally surging beyond $10,000 about 48 hours ago. It later incurred a small drop and fell to roughly $9,800. Perhaps the previous breach of five-figure territory occurred too swiftly; maybe BTC wasn’t used to being at such a high number in a while. Either way, it doesn’t look like the drop has lasted given that the digital coin is now back on track with $11,000 in its sights.
Naturally, analysts are wondering what could have happened to make BTC incur such a quick and drastic change. For one thing, large trades have been recorded over the past 24 hours, suggesting that perhaps crypto whales are active within the space. Whale Alert, a crypto transaction tracker, has recorded more than $350 million in bitcoin traded over the past day through two very large transactions.
Of course, there are some analysts out there who want to bring everything back to bitcoin’s halving, which is scheduled for this coming May. Gavin Smith, chief executive officer of the crypto trading platform Panxora in Hong Kong, states:
The underlying driver is the bitcoin halving event in May. Previous halving events have seen some of the larger participants hold off on releasing bitcoin into the market in anticipation of a rise into the event.
This Will Be a Big Year
Once again, Tom Lee of Fundstrat fame is entering the picture with his bitcoin price predictions, something he said he would walk away from at the end of 2018. Interestingly, Lee predicts bitcoin reaching the $27,000 mark at the end of 2020. He states:
A lot of good things are happening with bitcoin this year. I think bitcoin could rally very strongly from here. Bitcoin should return to and move beyond its all-time high at some point this year.
Lee believes that Donald Trump’s negative outlook on bitcoin, Libra and cryptocurrency in general during 2019 prevented BTC from reaching its potential. He’s confident the comments Trump made about digital currencies had something to do with bitcoin ending at a somewhat disappointing level, though he’s certain something big is likely to happen over the next ten months.