After the fairly bland recent market acts, Bitcoin soared over $10,000 for the first time since early June. For about 12:31pm, the digital money traded for $10,196.27. According to Coindesk data, Singapore time is 2.55% higher than 24 hours earlier.
Last June, Bitcoin hit $10,000 and has seen a slow fall since then. Yet Bitcoin has grown by almost 11% in the last seven days.
Vijay Ayyar, Head of Business Development at the cryptocurrency exchange Luno, told TechNews NG that big players were debating whether to sell their bitcoin to smaller market entrants who could bring down the price and make it more affordable for bigger traders to buy more digital property.
“This doesn’t seem to have happened,” Ayyar said. “What we have unfolding is potentially re-accumulation by big players, joined by smaller traders in an attempt to push BTC higher past 10K and more past 10.5K, which is the big resistance level, where BTC last put in a high.”
“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.
Although last week’s bitcoin was higher, big indices on Wall Street like the S&P 500 were lower. Yet, on Monday, Gold continued to climb and reached a record high. Gold is viewed as a so-called safe haven commodity purchased by investors in times of uncertainty.
Bitcoin has been often named “digital gold” with supporters saying it may be a strong investment for safe haven. Bitcoin, however, has in recent times appeared to move closer to stock markets, and is known for its immense volatility.
In an attempt to help mitigate the economic effects of the corona virus pandemic, both stock markets and gold have provided funding through the latest economic stimulus packages from governments and central banks all over the world. The European Union, for example, hit a restructuring package of almost 2 trillion euro earlier this month.
Investors are now closely tracking the world’s various corona-virus vaccines. Oxford University recently performed early stage clinical experiments with AstraZeneca, a pharmaceutical giant. According to data reported in The Lancet, the drug developed a positive immune response.
Ayyar said both these stimulus steps and hopes for a vaccine could support bitcoin.
“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 as well. And BTC and crypto will follow on this regard. Added to the fact that a vaccine seems within reach as well now, no reason to be bearish near term,” said Ayyar.