Bitcoin bull run
Bitcoin breaks the important $ 8,000 barrier on Wednesday night and starts a new bull run. Many experts see the tense situation between the United States and Iran as a trigger for the enormous price increase. We take a look at current events.
Bitcoin rate explodes overnight
Bitcoin is currently trading at $ 8323, its highest level in 50 days. In the last 24 hours, the No. 1 cryptocurrency has thus gained about 5%. The Bitcoin Dominance Index continues to rise to 69.1%, over $ 10 billion has been pumped into Bitcoin in the past 24 hours. This increase implies that many investors view Bitcoin as a “safe haven”.
Bitcoin as a safe haven
The conflict between the United States and Iran is causing gold prices to rise. The precious metal is considered a crisis-safe “safe haven”. A property that many investors also attest to Bitcoin. This phenomenon could already be observed during the economic crisis in Venezuela, when many citizens used bitcoin transactions as a way out. To what extent the current conflict affects the BTC course is unclear. There could be several reasons for the upward trend. The year 2019 is over and the traders are back in the market. The current bull run draws attention, not only in cryptospace, to the No. 1 cryptocurrency. Added to this is the fear of missing a trend (FOMO).
Hash rate with record values
The Bitcoin network is more secure than ever and the hash rate climbed to a new record high this week. The network has a proud hash rate of 120 exahashes per second. These numbers could provide another reason for the rising price.
Altcoins are waning
The Bitcoin rate has been increasing daily since the weekend and the altcoins are following suitably. This picture has been observed frequently in the past few days. With the current upward trend, however, the altcoins had significant difficulties keeping up. Of the top 20, only Tezos (1.75%), UNUS SED LEO (3.71%) and Chainlink (4.06%) recorded an upward trend. The Crypto.com Coin is today’s top performer with an increase of almost 8%.
Cryptocurrencies are not a threat
In addition to the Bitcoin run, there was other important news related to cryptospace. Gita Gopinath, herself a leading economist at the International Monetary Fund (IMF), said in a Financial Times article that cryptocurrencies do not pose a threat to the US dollar for the time being. With the announcements of the Libra launch, numerous discussions were held last year about possible dangers for the financial markets. This development seems to be calming down at the moment.
Overall market capitalization increases
After the turn of the year, the money flows back into the crypto market. The trading season has started and this is reflected in the total market capitalization. It is currently well above the important USD 200 billion mark (approx. USD 213 billion) and is climbing to a new 30-day high. Bitcoin volume alone has been over $ 32 billion in the last 24 hours. One thing is certain: You should keep an eye on the crypto happening in the next few hours.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.