Bitcoin prices were slightly higher Tuesday morning, but the largest digital currency remains in the midst of a major rally that has it flirting with the psychologically important $10,000 area. At the end of March, bitcoin had a market capitalization of $117.26 billion, a number that has since vaulted to $157.42 billion.
On Tuesday morning bitcoin was trading at almost $9,300, according to Coin Market Cap.
Recently, some big-name investors, including George Soros and the Rockefeller family, signaled their interest in blockchain technology and cryptocurrenices. That against a backdrop of potentially favorable seasonality. Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.
“We believe the “winter” is ending for Bitcoin, as the crypto to fiat pressures from tax day subside, and as headline risks seem to be fading,” wrote Tom Lee, managing partner at Fundstrat Global Advisors in an April 20 note, reports MarkeWatch.
Will Bitcoin Rally Last?
Bitcoin’s rally above $9,000 comes just a couple of weeks after the cryptocurrency committed a death cross, where its 200-day moving average fell below its 50-day line. The death cross is normally bearish, but it needs to be validated, something bitcoin did not do.
The recent move higher coincides with some favorable seasonality for bitcoin. Seasonal factors could lead to better things for the cryptocurrency in the second quarter, a period in which bitcoin has historically fared well.