Bitcoin hits $ 10,000 for the first time in 2020

Credit: Eivind Pedersen – Pixabay

This weekend, the bitcoin price has passed the bar 10,000 dollars. The first cryptocurrency on the market had not reached this level since last October. For some analysts, its price could rise again in the second quarter of 2020.

Sunday morning, Bitcoin (BTC) price has passed the psychological milestone 10,000 dollars to finally reach $ 10,193 this night at its highest level, according to the data provider Bitstamp. Its price is now moving around $ 10,053 and has dropped slightly (0.22%) over the past 24 hours.

The rally on Bitcoin intervenes while the S&P 500, a popular stock market index based on 500 large companies listed in the USA, is also reaching new heights.

For Michael Sonnenshein, CEO of Grayscale Investments, investors increasingly view the digital coin as a store of value or as a way to protect yourself against inflation.

“If the story continues, the halving coming, which is expected to take place in May, could also have an impact on the price, ”he added.

Next May, Bitcoin will see her 3rd halving, or halving the rewards for minors. An event generally much awaited by investors, who see it as an effect of scarcity. The reward per mined block will drop from 12.5 to 6.25 bitcoins. This mechanism operates every 4 years and aims to control inflation.

The number of Google searches for the term " bitcoin halving "Has increased steadily with the price of bitcoin," said analyst firm Arcane Research.

Other specialists are also quite confident for the future. Rob Sluymer, technical analyst at Fundstrat Global, estimates that its price could continue to climb in the second quarter of 2020 to trade between 10,000 and 11,000 dollars.

According to the blockchain and cryptocurrency data company Glassnode, deposits on bitcoin trading platforms have declined significantly in the past 6 months, suggesting that the current rise was not driven by retail investors.

During the rally last summer, we saw over 60,000 unique daily deposits. Probably investors taking profits. The decrease could be due to the fact that they are less tempted to sell. Since then, they have dropped by almost 60% to 25,000, ”said Glassnode.

The market capitalization of the cryptocurrency market now stands at over $ 285 billion. The most popular altcoin courses, such as Ethereum and XRP, also progressed this weekend.