Bitcoin finally hit the coveted $10,000 mark this weekend after gaining over 10%. This is the first time the leading cryptocurrency is making such a big move since its halving in May.
The cryptocurrency has been locked in a tight channel since early May 20202. BTC has been trading between $8,800 and $9,500 with no hints of a move above or below. The largest cryptocurrency by market capitalization briefly surpassed $10,000, hitting a high of $10,023 at 10.10 am UTC. After that, the price fell to $9,927 after its peak, and by 11 am, it had dropped to $9,927. There was one last hurrah to $9,985 before it settled at its current price, $9,903.
Dry Spell Is Soon Ending
Sunday is usually a slow day in the cryptocurrency markets when many traders expect sideways movement from BTC if not severe dips. However, bitcoin did the opposite today, and the quick move has broken the psychological price level of $10,000. Even for those few minutes, brushing past the $10,000 mark has hinted that the dry spell is soon ending. BTC’s price hasn’t changed much during the last two months, and only now is its fate beginning to change. The last time BTC went above $10,000 was June 2nd when it hovered around $9,200 for the rest of June and all of July—until now.
There is a good reason why Bitcoiners feel the $10k threshold is significant. This was the price of the cryptocurrency just before the Covid-19 inspired market crash, which slashed BTC’s price in only two days. Since then, Bitcoin has been on a recovery mode, and surpassing $10,000 would mean that it’s made a full recovery.
Speculation is rife that the price increase is related to the increased interest in Decentralized Finance (DeFi). DeFi is a non-custodial financial product, most of which live on Ethereum. Ethereum today hit a peak of $316, its highest price since July 2019.
Beginning Of the Next Bull Run
Before today’s price increase, a lot of Bitcoin has made its way to cryptocurrency exchanges. A recent report Glassnode showed that since January 2020, more crypto was entering exchanges than was leaving. A breakout has been on the offing since the bitcoin halving event in May this year.
However, the two months after the halving looked bleak with the cryptocurrency struggling in the market. Gold soared to a new ATH, stock markets showed positive signs, and inflation was going to push higher and higher with loose monetary and fiscal policy. Amid this global scenario, a Bitcoin rush was inevitable, and now, we’ll have to wait to see if this is the beginning of the next Bull Run.