At 4:22 p.m. Bitcoin took the psychologically important $ 10,000 mark on Bitfinex. The last time the price was at these heights was on September 22, 2019. The mother of all cryptocurrencies is doing a strong rally at the beginning of the year. After the last rally in early summer 2019, the price dropped to a low of $ 6,643 on December 17. Since then it has been steadily increasing. The trend led to one of the strongest starts to the year in Bitcoin’s history.
Halving may be the biggest driver
Even if the stock-to-flow theory is controversial, the hype about halving is omnipresent. The stock-to-flow theory states that the decrease in the increase in supply increases the price in the long term. With halving, the increase in supply is halved. Namely from currently 12.5 Bitcoin per block to 6.25. The halving is expected to take place in May.
The last major cryptocurrency that has been halved is Litecoin. There was also a sharp rise in the price of Litecoin before the event. The entire market was growing at the time, but Litecoin clearly stood out in its performance.
However, the price of Litecoin dropped sharply after the halving, so that there is no connection with the stock-to-flow model. So it could also be the case with Bitcoin that the hype about the event up to its occurrence drives the price up and then it goes down again.
Altcoins are also growing
Quite a few altcoins are currently performing better than bitcoin. Many are already talking about a new season for old coins. Bitcoin dominance is falling and is at an annual low. Although this is still twice the all-time low (around 32%), a trend can be seen.
How is the course going now?
As usual, there are two scenarios that we could face now. The Bitcoin price is steep because market participants are afraid to miss something. This could quickly push the price up so that $ 11,000 can be taken in $ 12,000 in a few days.
Or there is a strong sell-off or a DIP. Judging from the current market situation does not necessarily result in a reversal of the trend. The price may gain momentum to permanently leave the $ 10,000 behind.
What is unlikely is that the price will stay near the $ 10,000 mark for longer. But in the end only time can tell what happens. So get popcorn, it will be exciting.
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Posted By
Lukas Mantinger
Lukas is a journalist and blockchain specialist. He has been dealing with the subject for many years and writes reports and reports every day. He is always up to date and, above all, an expert when it comes to technical questions.
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