The cryptocurrency market came to life after Bitcoin finally broke the all-important $10,000. In a typical fashion for the crypto market, the break happens during the weekend, when little or no liquidity amplifies the market moves.
Bitcoin has been on investors’ radar lately because of its months-long consolidation range. After it fell below $4,000 at the start of the coronavirus pandemic in late March this year, Bitcoin recovered to the $10,000 and then stalled. Every attempt to break higher was met with sellers, although buyers stepped in for a new attempt to push prices higher.
The break finally came, and now it remains to be seen who is buying Bitcoin and if the break will be sustained?
Money Keep Pouring into the Cryptocurrency Market
Data for the cryptocurrency market is highly uncertain. After all, this is an unregulated market in most of the world’s countries, and investors must take every piece of data with a grain of salt.
Therefore, when a big publisher like Forbes dedicates an article to the fintech community regarding data in the crypto universe, the likelihood is that these numbers are for real. According to Forbes’ sources, the cryptocurrency monthly trading volume surged in 2020 when compared with the last part of 2019.
February, March, April, May – the months when the coronavirus pandemic outbreak took the headlines, investors rushed to buy cryptocurrencies. It does not mean that they bought only Bitcoin, but the data refers to all cryptocurrencies out there.
As it turns out, 15% of Americans own some form of cryptocurrencies, with 8% of them getting into the crypto market in 2020. However, there is still a big chunk of Americans that do not have plans to own any cryptocurrency in the near future, showing the potential still out there.
Coming back to the price of Bitcoin, the majority of Bitcoin owners added to their portfolios during the 2020 coronavirus pandemic. Which explains the strong bounce from below $4,000 to the $10,000 level.
Gold played a crucial role for Bitcoin bulls too. Bitcoin is often viewed as the crypto equivalent of gold (have you noticed how the Bitcoin sign always has the yellowish colour – just like gold?), and gold just printed a new all-time high recently. Naturally, the bias was that Bitcoin would break higher too. Which it did, and now it remains to be seen if buying persists at the $11,000 and beyond.