Bitcoin, which has leaped higher multiple times over the last few months, is showing little signs of slowing and now bitcoin traders and investors have their sights firmly set on the psychological $10,000 per bitcoin mark.
The bitcoin price jumped around 10% yesterday to almost $9,000, touching highs of $8,939 on the Luxembourg-based Bitstamp exchange, before falling back slightly. The bitcoin price is now trading around $8,700, up 70% over the last 30 days and a whopping 120% since the beginning of 2019.
The latest bitcoin price rise pushed up many other major cryptocurrencies.
The sudden rise in the bitcoin price caused the value of the wider cryptocurrency market to soar by more than $20 billion, with bitcoin adding almost $15 billion of that.
The bitcoin price, pushed on by a raft of positive news for the bitcoin and cryptocurrency market in recent weeks, was boosted on Monday by long-term technical data that turned bullish for the first time since last May.
Bitcoin’s 200-day moving average is now hovering around $4,500 after falling steadily since the middle of last year.
Meanwhile, ethereum, Ripple’s XRP, bitcoin cash, EOS, and litecoin all made double-digit gains.
While the bitcoin price breakout comes after a few positive developments in the bitcoin and cryptocurrency space, analysts were still left scratching their heads over the exact cause of the rally.
It was May last year that bitcoin last came close to the $10,000 level.
“The question is, who drove the breakout,” asked eToro’s senior market analyst Mati Greenspan. “Well, whoever it was, the surge definitely occurred with high volume. Trading activity had been waning over the course of last week and it seems it’s back up at the moment. Not quite where it was during the all-time high levels of mid-May but still very much elevated compared to normal levels.”
Bitcoin’s 24-hour trading volume rose yesterday by $10.3 billion, according to data from CoinMarketCap.
“By now it’s very clear that the crypto winter is over and it’s now spring,” Greenspan added.
Some are however concerned the market might pull back after its recent rapid rise.
“There are signs the rally is running too hot,” Mike McGlone, a Bloomberg Intelligence analyst wrote in a note.