The bitcoin price snapped out of its two-day slump on Thursday, climbing past $4,315 amid surging demand from Korean traders.
Earlier this morning, the bitcoin price began to dip, falling as low as $4,164 at 9:00 UTC. Although it quickly recovered above the $4,200 threshold, it appeared that the markets were cooling off from last week’s rally. However, the bitcoin price continued to spike leading into the afternoon hours, bringing it above the $4,300 mark to a present global average of $4,315.
The rally has largely been fueled by increasing demand on South Korean bitcoin exchange Bithumb, whose BTC/KRW pair is currently trading at $4,361–a full $46 above the global average and $52 above Bitfinex’s BTC/USD, which is bitcoin’s highest-volume trading pair. Kraken’s BTC/EUR is also trading well above the average and is currently priced at $4,329. Interestingly, however, the bitcoin price is trading well below the average on Japanese bitcoin exchange bitFlyer, where BTC/JPY is valued at just $4,302.
It is not immediately clear what is fueling the increased demand from Korean traders, especially considering that BTC/KRW occasionally lags behind the global average price.
However, analysts predict the bitcoin price will continue to climb in Q4, and several factors confirm this bullish outlook. Most notably, bitcoin continues to gain traction within institutional circles, as was confirmed by Goldman Sachs CEO Lloyd Blankfein’s recent revelation that he is “still thinking” about bitcoin but has not yet formed a definitive opinion. Additionally, even outspoken bitcoin skeptics like Mark Cuban have begun begun investing in bitcoin-backed assets. Finally, official Chinese press agency Xinhua hinted that the country may soften its stance toward cryptocurrency exchanges in the mid-term future, potentially opening the door to the restoration of bitcoin trading in a highly-regulated order-book environment.
Featured image from Shutterstock.
Last modified: May 21, 2020 9:12 AM UTC