Bitcoin bucked the trend lower in the broader crypto market as it attempted to cement its recent surge above the key $8,000 to entice further buying.
Bitcoin rose 2.21% to $8,358, just a touch below session highs of $8,444.
The move higher comes as analysts continued to talk up the prospect of further gains on on the back of a supply shock next year and signs that the use of bitcoin will be more widespread.
The halvening event in 2020 will cut the amount that bitcoin miners receive to 6.25 BTC from the current 12.5 BTC, reducing the total supply in the market.
“What I think might be happening is an anticipation of a coming supply shock in 2020,” Alyse Killeen, managing partner of StillMark Capital told Bloomberg. “In 2020 we’ll have just half the daily supply of bitcoin that we do now.”
“While we’re looking ahead to this supply shock and halvening event, we’re also seeing greater demand for bitcoin and new on-ramps for more familiar and conventional sources. There’s the anticipation that there will be a broader group of users and consumers who have an appetite for bitcoin,” Killeen added.
Bitcoin’s total market cap, often used to gauge demand, remained steady at $264 billion, unchanged from a day.
Other cryptos failed to mirror bitcoin’s move higher. XRP/USD fell 2.48% to $0.0.39261, ETH/USD lost 1.05% to $256.50 and LTC/USD slipped 3.95% to $127.62.