Bitcoin is Near $10,000
Bitcoin is poised to move beyond $10,000. At the time of writing, it currently sits at $9,922, and has already surpassed $10,000 on Chinese exchanges. Its record high is $19,666. Bitcoin is currently at its highest price since May 2018.
Bitcoin has tested the technical resistance set in April 2018 of $9,949, and the psychological resistance of $10,000 is next. Since April 1, Bitcoin is up 140 percent.
Rob Viglione, Horizen Co-founder and President, says the $10,000 price point is particularly important psychologically due to the recent bear market, referred to by many crypto enthusiasts as the ‘crypto winter’.
“While the price surge could be related to the question of supply (the bitcoin ‘halvening’ event in which the mining reward will permanently reduce by 50% is less than a year away), the impact of recent announcements, like Apple’s CryptoKit launch and the release of Facebook’s Libra White Paper, have undoubtedly also had an encouraging effect on consumer confidence around cryptocurrencies,” said Vigilone.
The first time Bitcoin crossed the $10,000 threshold was in November 2017. At the time, Ethereum had increased from 10 bucks early that year to $480. Ethereum is nearing $300. According to Yonatan Sela, Co-Founder and Chief Business Officer at Props, the recent price moves north are not a surprise to people in the crypto space.
“At this point, most people have heard of Bitcoin, and there are millions who ‘get it’ and believe it will soar to become the equivalent of gold in the digital age,” said Sela. “There are many who bought bitcoin in 2017 and sold it at a loss only to see it bottoming at a higher price than last time around and coming back stronger. They’re not selling again. Some of these people are institutions who have now established crypto-custody solutions and far more knowledge than before.”
He says that news like Libra, Facebook’s recently announced cryptocurrency, will only spark more interest in blockchain and bitcoin. Experts also mention the maturation that has taken place in the Bitcoin ecosystem since it last crossed $10,000.
“This run is far more justified given the current level of adoption — the bitcoin blockchain has remained consistently above 3.5 transactions per second since January,” said Mati Greenspan, Senior Market Analyst, eToro. “With Facebook making a grand entrance into crypto this week as well, it’s likely that the market is anticipating greater institutional participation in the coming weeks and months.”
Mike Alfred, Cofounder and CEO of Digital Assets Data, chalks the recent price increase to supply and demand pressure, making $10,000 bitcoin inevitable.
“All the data compiled by the Digital Assets Data platform shows that citizens of countries with high inflation are adopting BTC independently of price movements,” said Mr. Alfred. “Now that BTC has reached the $10k mark, we could see all-time highs in short order, as attention in developed economies focuses back on BTC as an alternative to the Modern Monetary Theory approach taken by most central banks and policymakers.”
He adds: “Personally, I’m looking for $50-60k this cycle and think we could see prices that high sooner rather than later.”
With a more sophisticated ecosystem, more mature market, and increased adoptions, we are seeing some trendssome believe that increased adoption will underpin the next price increases.
“Those without a historical understanding of bitcoin will likely chalk up its recent resurgence to a perfect storm of bullish news – and they might be right,” said Adam Badrawi, Senior Analyst at Wachsman, a professional services firm in the blockchain space.
“The oft-repeated mantra that ‘institutions are coming’ seems to be coming true, with powerhouses like Facebook, Fidelity, Baakt, and more outlining increasingly definable product entry points into the crypto markets,” said Badrawi. “As many traders and investors see it, even if Facebook’s Libra project does not provide a clear path to onboard new money into bitcoin via direct trading pairs, the fact that millions (perhaps billions) of people will suddenly be exposed to cryptocurrency wallets could result in a spillover effect into the bitcoin markets.”