In a new high, Bitcoin price briefly reached above $11,400, the highest in more than a year. For the first time since 2019, Bitcoin price soared past $11,000 Monday, marking the end of a downtrend year and pointing to further gains across the horizon. According to fyggex.com as of now Bitcoin is trending around $11,082.
Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC that large players were debating whether to sell off their bitcoin to smaller entrants in the market which could push the price lower and make it more attractive for the bigger traders to buy more of the digital asset. “This doesn’t seem to have happened,” Ayyar said.
The rally may be linked to the stock markets growing volatility, leaving investors scrambling for a safe haven alternative to cash and inventories. Gold prices were also rising and some say that Bitcoin is one of the safe haven.
Other reasons could be a recent economic stimulus packages from governments and central banks around the world have funded both stock markets and gold in an effort to help counter the economic effects of the coronavirus pandemic. The European Union, for example, hit a recovery package of nearly 2 trillion euros last week.
Many cryptocurrencies soared early on Tuesday before losses were reversed and trade was largely unchanged. Ethereum ($320) fell in more than a year, after hitting its highest point. Tether ($1) reported small gains after its market cap creased above the level of $10 billion.
The risk of a second coronavirus outbreak may add to the instability of Bitcoin, with another market drop possible if countries have to resort to lock-down. Bitcoin has a total market cap of approximately US$ 202 billion at its present price level. This represents 62 per cent of the overall crypto industry, which currently amounts to nearly $327 billion.
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*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.