After trading for much of the day around just under $9,400, Bitcoin rallied over 8% in the 24 hours to May 7, 23:50 UTC. Buoyed by high intraday trading volumes (over $26.8 billion worth of BTC was traded in the past 24 hours), the digital asset cleared several resistance levels to hit $10,026.
Bitcoin’s rally to $10,000 is the first time since February the cryptocurrency has breached the price level
Bitcoin has smashed another psychological level as the price rallies to $10,000 and a billionaire investor claims the digital asset is the best bet against inflation
This price action is the first time in over two months the bulls have managed to push prices above this key threshold.
Yesterday’s open at $9,190 swung 8.78% on the day, first breaking above the psychological $9,500 level before quickly surging to add $807 on the coin’s value at its $9,997 close. It’s the leading cryptocurrency’s highest closing price since February 22.
The last time Bitcoin traded at levels around $10k was in February, before a massive sell-off culminated in ‘Black Thursday’ on March 12th.
At the time, Bitcoin’s price swung just above $8k before it plummeted over 50% to test lows of $3,850. Yet, amid a worsening COVID-19 pandemic and its impact on the global economic outlook, Bitcoin steadily rose to trade at $8.5k on May 4.
Three days later, and three days to its block halving event, the pioneer crypto has reached 160% gains against the US dollar since that March 12-13 crash – its worst year-to-date one-day performance.
Billionaire Praises BTC
The latest upside in Bitcoin price comes amid a further boost on the macro front. Billionaire hedge fund manager Paul Tudor Jones has revealed his firm takes a keen interest in Bitcoin. According to the macro investor, Bitcoin is the “fastest horse” on the market to hedge against inflation, exacerbated by money printing bailout plans across the globe.
At the same time “Bitcoin whales” continue to accumulate their positions as the market anticipates a halving rally. According to the on-chain market analysis platform Glassnode, the last two months have seen a huge increase in the number of hodlers (long-term investors) intent on beefing up their positions.
The trend “suggests confidence in BTC leading up to the halving”, the platform notes in its latest analysis posted on May 7.
For investors, Bitcoin remains the best performing asset of 2020. The crypto is about 40% up on its value at the start of the year, trouncing the S&P 500, that, despite recent gains, is wobbling at 10% in the red for the year.
As of press time, Bitcoin is trading at $9,910 its value up by 6.78% on the day. Altcoins have also flipped green after retreats on Thursday saw Ethereum, XRP, LTC, and BCH among top coins to descend into the red. All are trending up as of press time, making gains of between 1.25% and 3.9% on the daily charts.