With Gold surging higher Monday as investors seek out lucrative alternatives to low yields, Bitcoin spiked above $10,000 for the first time since early June after tepid price movement recently.
Bitcoin has sometimes been referred to as “digital gold” with supporters suggesting it could be a good safe-haven investment. However, bitcoin has tended to trade closer to equity markets in recent times and has been plagued by massive volatility, which has either made investors fortunes or crushed them.
“Bitcoin is currently realizing its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin—which shares its key characteristics of being a store of value and scarcity—could potentially knock gold from its long-held position in the future as the world becomes evermore tech-driven,” Green said.
The cryptocurrency was trading close to $10,200, roughly 2.55% higher than 24 hours previously, according to data from Coindesk.
A Crypto Climb
Vijay Ayyar, head of business development at cryptocurrency exchange Luno, noted that large players were considering whether to sell off their bitcoin to smaller entrants in the market which could stymie the price and make it more attractive for the bigger traders to buy more of the digital asset.
“This doesn’t seem to have happened,” Ayyar said. “What we have unfolding is potentially re-accumulation by big players, joined by smaller traders in an attempt to push BTC higher past 10K and more past 10.5K, which is the big resistance level, where BTC last put in a high.”
“We still haven’t broken the 10.5K level, if that happens, BTC is probably running to 15K. All signs point to that at this point,” he added.
Ayyar said that bitcoin could receive a boost from these stimulus measures as well as optimism over a vaccine.
“My view is that with the major governments declaring unprecedented stimulus packages … we will see continued bullish momentum across markets. So that includes equities and gold as well. And BTC and crypto will follow in this regard. Added to the fact that a vaccine seems within reach as well now, no reason to be bearish near term,” Ayyar said.
While the crypto has been slow to move above $10,000 recently, analysts say that a strong move could propel Bitcoin even higher.
“The Bitcoin price crossed above the 10K mark and the price action looks bullish now as the price has cleared a major psychological level that has been there for a long time,” said Naeem Aslam, Analyst at AvaTrade, in a research note.
“If the Bitcoin price does pick up the momentum, nothing else will be able to match it as Bitcoin is a different kind of beast. We believe, the next resistance for the Bitcoin price is 15K now,” he said.
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