It looks like all the hype and fear that surrounded the recent rumor of Satoshi Nakamoto moving his bitcoin has subsided. Bitcoin has not only crawled back above the $9,000 mark, but it has managed to add several hundred to its price to trade beyond the $9,500 position.
Bitcoin Is Bullish Once Again
This is certainly good news, but the currency is still struggling to break past $10K. What will happen in these coming weeks? Will the world’s number one digital currency by market cap continue its bullish streak and hit five figures? Will it remain as it is, or is this run just one big hoax of some kind?
Bitcoin’s behavior has become hard to predict, as just three months ago (or within that range) the currency was trading in a high $3,000 position. That’s a massive difference from where it stands now. $6,000 later, many people see bitcoin as the opposite of how they viewed it back in early March. During that time, the coronavirus was hitting a peak, and many saw speculative assets as wasteful and scary.
In addition, there was a real attitude that cash was king, and many were looking to sell their assets as a means of gaining more cash so they could be okay during this potential time of crisis. However, things ultimately changed when the U.S. government decided to issue a stimulus bill that would put as much as $2.2 trillion back into the economy.
This sounded like a great idea, though many experts – including Elon Musk of SpaceX and Tesla fame – felt that the move was way too rash given that money simply couldn’t be printed out of thin air. Overprinting can lead to inflation and other economic problems, and the idea of putting $1,200 into every American pocket didn’t strike positive vibes with financial analysts and business owners.
Will the Trend Continue?
As a result, many rejected the idea that cash was suddenly at the top of the money ladder. They began to turn away from cash and now saw assets like BTC and gold – the two commodities that were considered far too speculative during the early coronavirus peak – as a means of hedging their wealth against inflation and keeping their money secure. This caused hardcore spikes in the BTC price, which ultimately gained $3,000 a month between then and now.
In addition, anticipation surrounding the halving – which occurred on May 12 – also played a role in bringing bitcoin back to the top. The currency is facing another dilemma in how and when it will potentially reach back towards the five-figure range. Perhaps this will happen sooner rather than later granted the yuan – China’s national currency – is sinking, which in the past, has always managed to push bitcoin and other cryptocurrencies ahead.