Bitcoin has soared over the last 24-hour trading period, adding some 4% to climb well above the psychological $9,000 per bitcoin mark and is fast approaching $10,000—a level not seen since late September last year : Bitcoin Price $10,000.
Meanwhile, the gold price, a so-called safe haven asset that bitcoin has moved in tandem with in recent weeks, has also climbed as investors fret over the spreading coronavirus.
- A five-minute price rally took bitcoin above $9,400 on January 28.
- The move upside helped the cryptocurrency break above a long-term resistance area.
- Earlier in November, bitcoin had broken above the same price ceiling but failed to sustain its upside momentum.
Some bitcoin and crypto analysts have pointed to geopolitical uncertainty being the cause for bitcoin’s latest move higher, though others are unwilling to classify bitcoin as a safe-haven just yet.
“There does seem to be a lingering sensation that bitcoin may be transitioning into a traditional safe haven asset,” added Mati Greenspan, the founder of analysis group Quantum Economics. “[Bitcoin] doesn’t seem like it’s quite there just yet, but there are clear indications that it’s at least moving in this direction.”
The bitcoin price defied market watchers over the Lunar New Year weekend after some suggested bitcoin trading volumes were set to “nose dive.”
“Bitcoin and the other largest crypto-assets are surging this week, moving within touching distance of three-month highs this morning as investors look to alternatives to equities,” said Adam Vettese, market analyst at brokerage eToro, in a note earlier today.
“Having rallied over 12% in three days, [bitcoin] hit a peak of $9,389 overnight, its highest level since early November when it nudged over $9,400. This could prove to be the next significant hurdle of resistance, although if we do see a pullback, seeing the price make another higher low and maintain the 2020 uptrend will be encouraging for bulls.”
Another reason that may have pushed the bitcoin price higher (Bitcoin Price $10,000) is lowered borrowing rates. The Federal Reserve on Wednesday will decide whether to increase, decrease, or neutralize rates for now. The market projects the US central bank could keep the rates unchanged.
Bitcoin bulls have been out in force over the last few weeks, with many hoping calendar highlights including May’s bitcoin halving and hotly-anticipated upgrades to the bitcoin network could send bitcoin back to its all-time highs this year.