At the time of writing, bitcoin – the world’s number one cryptocurrency by market cap – has shot up to just under $9,900. About $100 more to go and bitcoin will have again struck the $10,000 mark this year.
The Bitcoin Price is Exploding
It’s hard to say whether the asset – should it hit the five-figure range – will remain above $10,000 for the rest of the year. To be perfectly fair, the jump to $10K has been relatively slow and steady this time around, and it’s taken much of last week to hit this figure. Perhaps this slower, more evened out pace is exactly what bitcoin needs to retain a higher price.
The last two times bitcoin hit $10,000 were in early June and early May. Each time, the jump only lasted what felt like mere hours, and much of these jumps can be attributed to temporary hype, such as in May when the currency was incurring its third official halving. Many analysts were convinced that the bitcoin price was going to explode beyond reason and potentially hit its all-time high of $20,000 again, like it did at the end of 2017.
However, it’s safe to say that there was far more price action during the leadup of the actual halving rather than during the event itself. The circumstances presented to bitcoin fans everywhere proved to be relatively lackluster, and the currency failed to strike any new territory to many users’ disappointment. When the currency did hit $10,000, it was very brief, and the asset failed to remain above the five-figure line.
But the situation that time was quite different in that there was a sudden leadup to the hitting of $10K. There was a lot of false and incorrect hype surrounding the May 12 halving event, so when something magical failed to materialize, it would make sense that the currency’s price would hit a bit of snag.
This time, the asset has required several days to get where it’s going, and it’s still not even at $10,000. Bitcoin has incurred something of a struggle, likely reacting from positive news that banks can now offer crypto services to their customers and that the U.S. Federal Reserve is on the verge of releasing new stimulus checks for suffering Americans.
More Money Coming Our Way
The Fed is now saying that more stimulus money could be available as early as this coming August. This will put another $1,200 into citizens’ pockets.
These are two large stories, and yet bitcoin is still taking its time with its present ascension. The currency hasn’t gone crazy and simply jumped to $10K from one day to the next. It’s “feeling things out” for lack of better terms, and giving itself time to reach this new stage, suggesting that perhaps this $10K run could last a while and place bitcoin on a steadier plane.