Bitcoin has done it. The world’s number one digital currency by market cap has surged beyond the $10,000 mark and is now trading for an impressive $10,800, noting an 11 percent jump over the past week alone.
Bitcoin Shoots Beyond $10,000
Why, suddenly? What could cause the currency to shoot up so fast, and what is in place that would allow bitcoin to potentially keep its current price position? It’s not like bitcoin hasn’t crossed the $10K threshold throughout 2019, and yet so far, the jumps have been barely over the mark. As a result, bitcoin has failed to withhold such a position and has often dropped back into the $9,000 range (or lower) within days or even hours of hitting $10K.
This time, however, things appear to be a little different. For one thing, the Fed seems hellbent on releasing new stimulus funds for the American people affected by the coronavirus. This ultimately caused the price to spike earlier last week. In addition, there’s news that banks are now allowed to offer custody services for customers with digital currencies.
The first guarantees a big bundle of money going back into the economy – something that can stabilize bitcoin and push it further up the financial ladder. The second is a permanent branching of both centralized and decentralized finance. This can strengthen the monetary industry in general and give crypto a stronger sense of legitimacy.
Vijay Ayyar – head of business at crypto exchange Luno – says that many of the platform’s institutional traders are now considering selling their BTC stashes to retailers and smaller traders. This will potentially push the price of the asset to a lower figure and thus make it more attractive to bigger traders who are considering buying their way into the bitcoin market.
This doesn’t seem to have happened. What we have unfolding is potentially re-accumulation by big players, joined by smaller traders in an attempt to push BTC higher past 10K and more past 10.5K, which is the big resistance level, where BTC last put in a high. We still haven’t broken the 10.5K level. If that happens, BTC is probably running to $15K. All signs point to that at this point.
Well, then… Considering bitcoin is now trading for just under $10,900 and on the verge of striking $11K territory, it’s probably safe to assume that the currency will ascend to the $15,000 range granted Ayyar’s words are true.
A Vaccine Is Getting Closer
Putting bitcoin aside, gold has also been on the verge of striking a new high of $2,000 per ounce, paying homage to the idea that bitcoin is “digital gold.” Ayyar further states that he’s confident bitcoin will potentially rise even more the closer the world gets to developing a coronavirus vaccine:
A vaccine seems within reach as well, now. No reason to be bearish near term.