Bitcoin Bulls Fight Back as Crypto Tops $10,000 Again
Back in June, it was big news when Bitcoin finally made it back over $10,000 after months at less than half that. While bulls continued to push the price up as high as $14,000 in the weeks that followed, it managed to fall back down below the milestone as regulators have been continually slamming cryptos in general. However, as Forbes reports, the latest rally is giving Bitcoin believers some hope once again.
Over the past few days, the price of Bitcoin has risen more than 10%, pushing it above $10,500 as of this writing. This timeline happens to coincide with the Federal Reserve’s cut to interest rates. Commenting on the link between the two events, eToro senior market analyst said, “Given the connection that crypto influencers have been making between economic stimulus and crypto lately, we will probably see a much swifter reaction in bitcoin’s price than we usually do. We can see that bitcoin did have a nice run-up the entire morning ahead of the [Fed’s decision]. At the exact time of the cut, there was a notable step down, which was quite in line with what happened in the stock market.”
There’s also been some good news for Bitcoin recently, even as Facebook’s Libra has been sucking most of the air out of the room. For example, Square CEO Jack Dorsey announced that the Cash App saw $125 million in Bitcoin sales during Q2. That nearly doubles sales from the first quarter of the year, which was already a record for the app. The strong sales resulted in $2 million in profit for the FinTech company.
Also potentially boosting Bitcoin’s price is the revelation that 85% of all Bitcoin that will ever exist are now in circulation. Forbes notes that this leaves just 3.15 million coins to be mined. However it will take 120 years for these Bitcoins to come into circulation as the amount released decreases by half each year.
It seems that the $10,000 mark has only grown in significance as Bitcoin bulls and bears battle on. Thus, for the time being, it seems that the former are still in control and that a breakout could be possible. Plus, with Libra apparently on the backburner for a while, expect an even greater focus on the world’s largest cryptocurrency in the weeks and months ahead.