Bitcoin prices were flying on Monday, pushing the digital currency to its highest level in about two months and ending the long sleepiness of the world’s No. 1 virtual asset.
Bitcoin, the largest and most influential cryptocurrency, shot past the key $ 10,000 resistance marker – all eyes are now at the critical $ 10,500 level, ”wrote Nigel Green, chief executive and founder of deVere Group, a financial firm, advising some $ 12 billion.
BTCUSD Bitcoin,
the recent rally went to $ 10,237 to about its highest level since June 1 based on prices at the time.
Future of Bitcoin BTC.1,
trading on CME Group was at $ 10,335, the highest since June 2, according to FactSet.
The move for the digital currency comes as gold prices rise, amid a rush for assets that were considering alternatives to cash and stocks fueled by the COVID-19 pandemic that has driven much of the developed world into a deep recession .
Gold prices rose to an intraday peak at $ 1.941.90, up more than 2%, and took an intraday record for the most active intraday at $ 1,923.70 an ounce that had stood since an ounce of September 6, 2011.
Prices for gold and bitcoin have climbed as the US dollar meter reaches its weakest level since 2018. US Dollar Index ICE DXY,
is trading down 0.7% at 93.736
As gold prices have reached a record high at $ 2,000, bitcoin has seen largely unlisted trade even as there are concerns about the virus and external spending by governments to help promote economies beaten by pandemic has supported bullion prices.
Some digital currency bulls believe that bitcoin is beginning to benefit from some of the same dynamics that have picked up gold but in delays.
“Bitcoin is currently realizing its reputation as a form of digital gold. Until now, gold has long been called a safe haven asset, but Bitcoin – which shares its key features of being a store of value and scarcity – could possibly beat gold from its long-standing position the future as the world becomes ever driven by technology, ”says Green.
Some experts believe that the growth in so-called stablecoins, which tends to be pegged to a fiat currency or other asset such as the US dollar or the EURUSD euro,
“Well, one possible reason [for bitcoin’s gains] is the rising stablecoin market cap, Simon Peters, a cryptoasset analyst at eToro, wrote in a research note on Monday. “For example, Tether (USDT) crossed the $ 10 billion mark this month and Bitcoin Coin (USDC), a stable Bitcoin Circle, is also at its highest level, having reached a market cap of over $ 1 billion. Some of this liquidity may have made its way into bitcoin, ”Peters speculated, referring to the popular stablecoins Tether and USD Coin, which are managed by a consortium of companies, including Coinbase Inc. and Circle Internet Financial Ltd.
Stablecoins, which usually trade at a 1-to-1 ratio to the underlying asset, have become popular because they can smooth the volatility typically associated with bitcoin and can make virtual assets more compelling like digital currencies .
Bitcoin’s short cut to above $ 10,000 in June didn’t amount to much, but some investors are now betting that the asset is going to touch $ 15,000 and beyond.
“Bitcoin price crossed above the 10K mark and the price action is looking bullish now as the price has cleared a major psychological level that has been there for a long time,” said Naeem Aslam, an analyst at AvaTrade, in a research note.
“If the price of Bitcoin is picking up momentum, nothing else will be able to match it as Bitcoin is a different kind of beast. We think the next resistance for Bitcoin price is 15K now, ”he said.