Bitcoin has shot up by another $100, and the upsurge for the world’s number one cryptocurrency by market cap just keeps growing.
Bitcoin Is Surging Again
Now, analysts think that if the currency can keep it up and potentially break $8,000, a run to $10,000 may soon follow. This is the sentiment of men like Craig Erlam, a senior analyst at OANDA. He explained in a recent statement that he believes $10K may not be far off for BTC if it can break the present $8,000 resistance level.
Granted bitcoin can be successful in its future ascent patterns and reach the predicted mark, the currency will have hit the $10,000 range twice in one year. As we all remember, bitcoin was trading for above $10,300 by mid-February. However, panic and global fear caused by the swelling coronavirus pandemic ultimately led to a massive selloff in the bitcoin space and one of the most dismal months (March 2020) in the currency’s history.
This selloff brought bitcoin down into the high $3,000 range, though to be fair to the currency’s resilience, this number didn’t last long at all. This is a testament to bitcoin’s strength, and the currency has since spiked by almost $4,000, bringing its figure back up to where it was just prior to the drops caused by the coronavirus.
Denis Vinokourov – head of research at Bequant – explained in an interview:
Risk-on mode was evidenced across both crypto and non-crypto markets, as market participants reacted positively to signs that coronavirus outbreaks have started to stabilize in some of the worst-affected countries.
Among the nations that are beginning to see their new cases and death rates drop are Italy, France and Spain – arguably the most affected regions in Europe and among the most affected across the globe. In addition, China and Austria have recently ended their coronavirus-related lockdowns, while the U.K. has reported fewer cases thanks, in part, to effective social distancing practices.
But there could be other news behind the sudden surge of bitcoin and assorted crypto. The checks of $1,200 touted in the $2 trillion stimulus package for the United States could be sent out as early as next week. America is feeling giddy over the thought of receiving free money in their mailboxes – heck, who wouldn’t be? This is likely leading to a decrease in overall fear and a higher interest in trading.
Is $10K a Possibility?
In addition, a second stimulus package could be on the verge of garnering approval as millions of Americas need further payroll assistance, meaning more money could make their way into average citizens’ pockets.
Either way, there’s still a long way to go if bitcoin is to reach pre-coronavirus levels, but the fact that the coin is willing to try gives a lot of crypto enthusiasts the hope they need.
