From crisis to moon?
Bitcoin confirms its strong start to the week with another pump. After the new 3 week high, the No.1 crypto currency has now reached a level that we last saw before the Corona crisis. Due to the upcoming halving and further bullish signs, the bulls could soon attack the 5-digit range. But first things first…
Bitcoin course in sight
At the time of this writing, the BTC is at the price of 7314 USD, and on the 24-hour chart this figure represents an increase of approximately 2%. After the bulls breached the long term resistance at $6800 on Monday, it didn’t take long to push the pair into the $7000 range. Currently, there are several reasons for a sustained bull run. We are taking a closer look at the possible triggers.
FOMO is back in crypto space. Behind this is the abbreviation for “fear of missing out”, meaning that investors are afraid of missing the next bull run. Again and again, an explosive mixture is created when hype and high volatility meet a bull market that is gathering momentum. Should this suspicion be confirmed in the coming hours and days, a quick jump into the USD 8000 range (and even significantly higher) would be quite realistic. But: An old wisdom says that one should not jump on moving trains. As always, it is advisable to take an extensive look at the essential fundamentals. Moreover, when you look at the pumping BTC market, you can quickly forget that the world is in a tangible economic crisis.
Traditional markets are recovering
The major stock indices have already been operating a considerable damage limitation since yesterday. The global rescue packages can at least contain the consequences of the economic crisis. However, the past few days have shown how quickly things can go downhill again. To what extent Bitcoin correlates with the traditional markets can currently only be guessed. In the past week, several successful encapsulations could be observed. Gold and Bitcoin are delivering a strong performance in the coronavirus pandemic. Due to their limited occurrence and low inflation rate, both assets are becoming the focus of anxious investors.
Bitcoin Halving 3
The third Bitcoin Halving Event is approaching with great strides and the interest of the crypto community is growing noticeably. In about 45 days, the Coin Rewards will be halved for the third time. From this point on, prospectors will receive “only” 6.25 BTC per block. As a result, the inflation rate drops to about 1.8%.
No matter whether FOMO, BTC Halving or correlating markets: Currently many indicators/events speak for a rising Bitcoin price. However, one should consider how unstable the crypto space can be. A few weeks ago, Bitcoin dumped a whopping 40% – in less than 24 hours. Such break-ins can happen again.