The biggest cryptocurrency’s current upward momentum carried it previous that psychologically important degree on Sunday for the primary time since October, in accordance with Bitstamp pricing. It rose as a lot as 2.6% to $10,179, capping a acquire of about 40% thus far this 12 months.
“The rally is part of a broader attraction for dangerous belongings as optimism grows that the coronavirus impression is perhaps restricted to the primary quarter and on optimism that China will play good with the U.S. on phase-two commerce talks,” mentioned Ed Moya, senior market analyst at Oanda.
Cryptocurrencies have been on an upward pattern all 12 months, with some analysts and digital-asset lovers suggesting they’ve benefited as safe-haven performs amid ongoing geopolitical issues across the globe.
“There’s definitely a story within the funding neighborhood that Bitcoin is solidifying its place as a retailer of worth, a flight to security, inflation hedge,” Michael Sonnenshein, managing director at Grayscale Investments, mentioned in an interview at Bloomberg’s New York headquarters. If historical past is any information, the upcoming halving, which is about to occur in Might, may additionally have an effect on the token’s worth, he mentioned.
Some Bitcoin lovers are predicting additional positive factors. Fundstrat International Advisors’ Rob Sluymer, for one, sees it rising by way of the second quarter this 12 months to commerce in a variety of $10,000 to $11,000. Mike McGlone, an analyst with Bloomberg Intelligence, says the 2020 outlook for the most important digital token stays favorable. “Much like gold, optimistic fundamentals ought to lengthen Bitcoin’s worth appreciation,” he wrote in a Feb. 5 be aware.
Bitcoin peaked at virtually $20,000 in December 2017 and completed that 12 months up about 1,400% because the cryptocurrency burst into the mainstream. It plunged 74% the following 12 months, earlier than rebounding virtually 100% in 2019.