After an impressive rally over the last month, Bitcoin is finally on the brink of breaking the $10,000 barrier once again. In fact, on some exchanges and countries like Hong Kong and South Korea, Bitcoin has already hit the $10,000 milestone – one of the most important psychological barriers in the crypto world.
Below is a screenshot that was posted by a Reddit user that goes by the name of Nielskw on the r/CryptoCurrency subreddit.
Source: Reddit
On the Bitcoin subreddit, celebrations have already begun despite the price of Bitcoin still hovering around the $9,900 mark on most exchanges. In a post titled “It’s official! 1 Bitcoin = $10,000 USD, again”, user Mikeross14 shared a muted video of what appears to be an Indian/Arabic celebratory dance as a tribute to the restoration of Bitcoin’s 5-digit price tag.
How It All Went Down
Throughout the month of April, the Bitcoin has been experiencing modest price gains ever since recovering from its bottom of $6,600. The price action started out with minimum traction, but gradually gained momentum about three weeks ago, when a lightning bull run drove the value of Bitcoin from sub-$7,000 levels to over $8,000.
Bitcoin’s trading volume has also been steadily increasing over the last few weeks – going from $4 billion to over $8 billion. However, the total trade volume of all cryptocurrencies experienced a decline of nearly $6 billion over the past two days, which suggests a shift of investor interest from altcoins to two of the biggest cryptocurrencies on the market – Bitcoin and Ethereum.
Since the market has just recovered from a rather violent crash, extremely volatile prices tend to drive investors to adopt a risk-averse mindset. As a result, major cryptocurrencies like Bitcoin and Ethereum tend to perform better than newly-established altcoins, since the prices of the former tend to be more stable compared to that of the latter.
What’s Next
Now that Bitcoin has (almost) surpassed the $10,000 barrier, investors will be looking forward to the following support levels of $12,000 and $14,000, while preparing for an upward trend that might lead to the current all-time high of $20,000.
According to Brian Kelly from CNBC’s Fast Money, Bitcoin’s price will continue to soar in the short term as adoption rates grow. To support his claim, Kelly cited Goldman Sachs, who recently added of a cryptocurrency trading desk to start to trade bitcoin futures for their clients.
Furthermore, the recent announcement that Bitcoin is not a security also served as a confidence boost amongst investors as the trading of Bitcoin no longer requires the approval of the SEC.
“It’s a complicated area. Because, as you said, there are different types of cryptoassets. Let me try and divide them into two areas. A pure medium of exchange, the one that’s most often cited, is Bitcoin. As a replacement for currency, that has been determined by most people to not be a security,” said SEC chairman Jay Clayton.
Image Source: Kiplinger