Tech Bitcoin has broken through $10,000 for the first time since June
#News Center ·2020-07-27 10:06:42
Bitcoin Breaks Above $10,000 for the First Time Since Early June After a Period of Price Stability
After a relatively flat price trend in recent days, Bitcoin has broken above $10,000 for the first time since early June.
According to data from Coindesk, the cryptocurrency was trading at $10,196.27 at around 12:31 p.m. Singapore time, up 2.55% from 24 hours earlier.
The last time Bitcoin surpassed the $10,000 mark was on June 3, after which it experienced a steady decline. However, over the past seven days, Bitcoin has gained nearly 11%.
Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC that large players have been discussing whether to sell their Bitcoin to smaller participants in the market. This could drive the price down and create an opportunity for bigger investors to buy more digital assets.
“That doesn’t seem to be happening,” Ayyar said. “What we may be seeing instead is large investors accumulating again, with smaller players joining in, trying to push Bitcoin above $10,000 and possibly even above $10,500 — a major resistance level where Bitcoin previously hit a high.”
“We haven’t broken through the $10.5K level yet, but if we do, BTC could head toward $15,000. All signs currently point to that,” he added.
Despite Bitcoin’s rise last week, major Wall Street indices — including the S&P 500 — declined. Gold, however, continued to rally and hit a record high on Monday. Gold is considered a so-called safe-haven asset that investors turn to during uncertain times.
Bitcoin is sometimes referred to as “digital gold,” with supporters arguing that it could serve as a good safe-haven investment. However, in recent years, Bitcoin’s price has tended to move more in line with the stock market and is known for its significant volatility.
Recently, global economic stimulus measures introduced by governments and central banks to combat the economic fallout from the COVID-19 pandemic have supported both stock markets and the gold market. For example, the European Union reached a nearly €2 trillion recovery plan last week.
In addition, investors are closely watching the development of various COVID-19 vaccines around the world. Recently, Oxford University, in partnership with pharmaceutical giant AstraZeneca, conducted early-stage human trials. According to data published in the medical journal The Lancet, the drug produced a promising immune response.
Ayyar noted that Bitcoin may benefit from both the stimulus measures and optimism surrounding vaccine development.
“My view is that as major governments announce unprecedented stimulus plans… we’re going to see continued bullish momentum across markets. That includes equities and gold. Bitcoin and cryptocurrencies will follow suit. And with a vaccine seemingly within reach, there’s no short-term reason to be bearish,” Ayyar said.