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Bitcoin Price Races to a New Yearly High Placing $10,000 Within Eye-Shot

Last Updated March 4, 2021 2:36 PM
Francois Aure
Last Updated March 4, 2021 2:36 PM

By CCN.com: The bitcoin price surged to $9,500, marking a fresh 2019 high. As the stock market sets a new record, BTC is joining in the party.


Bitcoin, BTC/USD,
Bitcoin has soared to a fresh high in 2019, rising above $9,500. | Source: TradingView  

Fundamentals Driving Bitcoin

According to eToro Senior Analyst Mati Greenspan in a tweet, fundamentals are driving the bitcoin price higher. He cited institutional adoption, more monetary easing from central banks, and the upcoming bitcoin supply halving all as positives for BTC. Greenspan noted that pure momentum might also be driving BTC/USD to fresh yearly highs.

Facebook’s cryptocurrency Libra appears to have returned crypto to the mainstream. Libra is a very hot topic, even if it is not launching for some time. Meanwhile, bitcoin futures exchange Bakkt has been fundraising like mad, and its contracts will be trialed in July. Finally, a legacy name like Fidelity getting into bitcoin can only be construed as a bullish development.

Dovish Fed Weakens USD, Sends Bitcoin Soaring

Fed Chairman Jerome Powell’s dovish press conference on Wednesday appears to have markets locked and loaded for another rate cut. As BitMEX CEO Arthur Hayes explained:

BTC Supply Set To Halve In 2020

Focusing on supply and demand, the amount of BTC available is tightening with the much-anticipated halving in 2020. This factor, coupled with rising institutional demand, has proven to be a cherry on top for the bitcoin price.

Sheer Momentum May Be Driving Bitcoin Higher

Ignoring all these arguments, perhaps the most potent thing driving bitcoin is sentiment itself. Traders have aggressively bought the dip after enduring a long and torrid crypto winter. Investors are riding a wave of relief that the downtrend, at last, may be over.

$10,000 Is A Critical Psychological Level

Hitting $9500 is certainly a big deal for BTC bulls, but this level is nothing compared to $10,000. The next psychological level  would bring a wave of media attention, but only time will tell if the major crypto can get back to five figures.