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.
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.
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.
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.
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.
Last modified: July 2, 2020 7:23 PM UTC