Bitcoin jumped above $ 10,000 for the first time since the beginning of June after relatively quiet recent price action.
The digital currency was trading at $ 10,196.27 at around 12:31 pm Singapore time, 2.55% higher than 24 hours previously, according to data from Coindesk.
Bitcoin last crossed $ 10,000 on June 3 and has since seen a steady decline. But over the last 7 days, Bitcoin has risen by almost 11%.
Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC that big players are debating whether to sell their bitcoin to smaller new entrants in the market that could push the price lower and make it more attractive to the Larger traders buy more of the digital asset.
“This doesn’t seem to have happened,” Ayyar said. “What we are possibly developing is a re-pooling by major players, along with smaller traders in an attempt to push BTC higher past 10K and more past 10.5K, the major resistance level, where BTC last peaked. . “
“We still haven’t broken the 10.5K level, if that happens, BTC is probably running to 15K. All signs point to that at this point,” he added.
While bitcoin was higher last week, major Wall Street indices including the S&P 500 were lower. Gold, however, continued to rise hitting a record high on Monday. Gold is considered a so-called safe haven asset, which investors buy in times of uncertainty.
Bitcoin is sometimes called “digital gold” with advocates saying it could be a safe investment for a homepage. However, bitcoin has tended to trade closer to equity markets lately and is known for its huge volatility.
Equity and gold markets have been supported by recent economic stimulus packages by governments and central banks around the world in a bid to help combat the economic collapse of the coronavirus pandemic. For example, the European Union reached a recovery plan of nearly 2 trillion euros last week.
In addition, investors are keeping a close eye on the number of coronavirus vaccines being developed around the world. Oxford University recently conducted early-stage human trials with pharmaceutical giant AstraZeneca. The drug produced a promising immune response, according to data published in the medical journal The Lancet.
Ayyar said bitcoin could benefit from these stimulus measures as well as hopes for a vaccine.
“My view is that with the major governments declaring unprecedented stimulus packages … we will see continued bullish momentum across markets. So that includes equities and gold too. And BTC and crypto will follow in this Added to the fact that the vaccine will and does appear to be accessible too now, no reason to be bearish near the season, “Ayyar said.