Bitcoin’s price surges to $10,000 for the first time since June 2019, leaving many feeling FOMO (fear of missing out). BTC is now breaking all key levels. In honor of Bitcoin today’s price milestone, here’s 4 key trends responsible for the surge.
Bitcoin halving is less than 4 days away
The primary stimulant behind Bitcoin’s rally for the pass few days is something called “block rewards.” Namely “halving,” the amount of BTC awarded to miners per block will reduce by 50%, from 6.25 to 6.25. As a result, the number of Bitcoin entering into circulation daily will cut in half.
As Bitcoin block rewards approaching, the key words “Bitcoin Halving” has swelled, according to Google Trends statistical data metric. The term “Buy Bitcoin” is also trending upward.
A billionaire started promoting Bitcoin
Paul Tudor Jones, a billionaire investor worth more than $5 billion recently published a paper promoting the first cryptocurrency coin.
Released on Thursday, the American hedge fund manager, conservationist and philanthropist stated that the Coronavirus (COVID-19) created a macro and geopolitical situation for traditional currencies.
As a result, investors looking for investments with more values started to inject more money into Bitcoin.
Mr. Jones wrote:
“Bitcoin reminds me of gold when I first got in the business in 1976. Gold had just been productized as a futures instrument (like Bitcoin recently) and had enjoyed a heck of a bull market, almost tripling in price.”
Federal Reserve printing money like a “mad man chasing nothing”
$3 trillion later, Congress is already working on another Wall / Main Street stimulus package. How will that money be replaced? No one has any idea.
Further eroding the dollar, Jerome Powell, the Federal Reserve chairman said he’s lowing interest rates; essentially bring it down to zero (0%). That’s on top of all the liquidity injections.
The long-term depreciation of the world’s #1 fiat currency will certainly lead to inflation. That will continue to boost Bitcoin and altcoins’ prices.
The state of Bitcoin price technical trend is strong
That phrase is often reserved for presidents during The State of the Union Address (SOTU). However, Blockchain speakers around the world will be using is instead, in the next couple of years, if not more.
The state of the union will be on life support for a long time, thanks to the devastation COVID-19 left on its trail. Let’s not forget all the corruptions as well.
How can a company such as Wells Fargo laying off workers and asking for government assistant when, just a few months ago, reported $4.6 billion in net income? The shutdown is only 1 month old. What happened to all that money in one month?
Bitcoin is not suffering from any of that. Outside of some price manipulation, here and there, Bitcoin’s chart is significantly bullish.
Bitcoin whale, CryptoHamster outline BTC’s bullish time frame as follow:
- Moving Average Convergence Divergence (MACD) bullish cross
- Parabolic SAR “BUY” signal
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.