The price of the world’s leading cryptocurrency has broken a keyresistance level to reach a 3-month high.
Bitcoin Price Reaches the $9,400 Mark
The price of Bitcoin reached the $9,400 mark a few hours ago and, in the process, surged past a key resistance to reach its highest level in more than three months. The price of the cryptocurrency rose from $9,150 to $9,400 within five minutes, according to data obtained from Coindesk’s BPI.
This latest rally means that the Bitcoin price has gained roughly $2,000 since the start of the year. This represents a 30 percent increase in value, in the space of a few weeks. The sudden rise in the price of Bitcoin is one of the many reasons why this digital currency remains one of the best investment vehicles currently available in the world.
The Bitcoin price will now be looking to reach the $10,000 mark as the bulls seem to be in control of the market once again. Once the $10,000 mark is attained, there is real optimism for a significantbull run before the end of the year.
Uncertainty in Global Markets Key to Bitcoin Price Rally
The cryptocurrency market has been rallying, mainly due to the uncertainty in the global markets. Several equities across the world continue to decline, due to some circumstances in Asia and other parts of the world.
The Dow Jones Industrial Average dipped by 1.6% on the 28th of January, while the S&P 500 recorded a similar decline of 1.5% on Tuesday. While the two indices are attempting to correct their recent losses, the uncertain situation in Asia makes it challenging for them.
The coronavirus outbreak in China continues to affect the global markets as investors are now looking for places to park their funds, pending on how and when the situation in China gets successfully resolved.
Su Zhu, the co-founder of Singapore-based crypto investment firm Three Arrows, believes that cryptocurrencies have become an excellent option for many investors.He stated that the recent rally seen in Bitcoin seems to be driven by the situation in Asia. As a result of the coronavirus, the reopening of the Chinese equity market has been delayed. In response, traders are looking to trade and have turned their attention to the 24/7 crypto markets for now.
While many people complain of the risk involved in Bitcoin investments, Jehan Chu doesn’t believe that these concerns are valid anymore. Chu, who is the co-founder and managing partner at Hong Kong-based blockchain investment and trading firm Kenetic, pointed out that the current high volatility of the macro-environment makes Bitcoin a not-so-risky investment option.
He stated that the recent surge in the price of Bitcoin is a clear indication of a much larger move upwards,which has been building up over the past several months. He added that other factors impacting the price of Bitcoin positively include the political strife in the US, turmoil in Iran as well as the coronavirus in China. These factors have destabilized the public markets and as a result, it is evident that traders are now looking for alternative shelters for their capital.
Interestingly, it is not Bitcoin that was the only cryptocurrency to post massive gains. The other cryptocurrencies in the top 10 list, such as Cardano, Ether, Bitcoin Cash, and XRP, are all posting good gainsat the moment. While things are looking up, the next step for the cryptocurrency market is anyone’s guess.