Bitcoin flirting with $10,000: Here’s what’s triggering this
At publishing, Bitcoin was at just over $9,300.
It’s just the beginning of an ascent towards the $10,000 psychological barrier.
The idea is that once it does that, the road to $20,000 and beyond will be paved, albeit with potential bubble bursts along the way.
What gains were made and where is the push coming from?
Bitcoin now has a market cap of more than $150 billion, a major improvement on previous weeks but still considerably below peak valuation of around $320 billion in late 2017.
Other major cryptocurrencies have been boosted by bitcoin’s recent resurgence, including ethereum, ripple and litecoin.
“The most significant gains were experienced by the bitcoin spin-off bitcoin cash, which has almost doubled in value in the last week from $750 to $1,500,” according to the Independent.
“The market-wide gains follow several months of steadily decreasing prices, which some analysts believe represent a bursting bitcoin bubble.”
Bitcoin at one point dropped $14,000 from its December 2017 high of $20,000 between January and April.
Factors included regulatory crackdowns in the US, South Korea, and other countries, lack of trust in cryptos on the back of thefts, heist, and other investor calamities like ICO frauds.
Recent Bitcoin sentiments are high as Pantera Capital’s prediction that it will reach $20,000 by the end of the year, and Fundstrat’s Thomas Lee’s forecast that bitcoin will rise as high as $25,000 in 2018,” according to the Independent.
“I’m not surprised to see bitcoin’s price exceed $9,000 this week,” Rodrigo Marques, CEO of investment platform Atlas Quantum, told The Independent, adding “Rumours of a price explosion seem to have been driven by more and more institutional buyers getting into cryptocurrencies.”
Bitcoin is up over 15% in the last seven days.
Several renowned figures within the cryptocurrency space think the future is what people dream it to be.
Self-described “bitcoin evangelist” Alistair Milne, believes bitcoin will reach between $35,000 and $60,000 by 2020, and celebrated investor Tim Draper revealed his prediction earlier this month saying that bitcoin will soar to $250,000 by 2022.
“Such a price increase would but bitcoin’s market capitalisation at around $5 trillion — more than five-times the market cap of Apple, which is currently the world’s most valuable publicly listed company,” said the Independent.
Stock market selloff triggering Bitcoin growth?
According to CNBC, Bitcoin rose to its highest level in more than a month as the broader U.S. financial markets sold off Tuesday.
The digital currency was trading near $9,436, jumped nearly 20% in the past week, according to data from Coindesk, after Bitoin had its worst quarter ever, when it lost roughly 48% its value in three months.
CNBC reported that the Dow Jones industrial average closed more than 400 points lower, dropping more than 750 points from its session high to the lows of the day. The S&P 500 fell 1.3%, and the Nasdaq composite declined 1.7%.
Spencer Bogart, partner at Blockchain Capital, said bitcoin presents an appealing alternative for investors selling on macro-economic news this week, reported CNBC.
A Thomson Reuters survey published Tuesday that said one in five firms are considering trading digital currency in the next year, marked a shift in crypto investor sentiment and helped prices, according to Joe DiPasquale, CEO of BitBull Capital, telling CNBC.
Sentiment is high
24 of the top 25 cryptocurrencies by market capitalization were up over the last 24 hours, CoinMarketCap data reveals.
The digital currency markets are benefiting from widespread confidence, stated Matthew Newton, Analyst at social trading platform eToro, reported Forbes.
“The bulls are back in charge,” said Jeff Koyen, CEO of 360 Blockchain USA.
However, “Bitcoin will not reach $20,000 again without a certain amount of regulation and sobriety,” he stated, emphasizing that regulatory frameworks surrounding digital currencies could still benefit from substantial improvement.