Bitcoin hits $9,000 high on Monday, confirming its vitality with an increase of 10% between Sunday and Monday. The symbolic $10,000 cap is now within range.
The analysis of the market for crypto-assets requires a lot of caution, but the interest of investors is undeniable. Sunday, May 26, Bitcoin prices increased by about 10% to 8,800 dollars, 70% in one month and 136% since the beginning of the year. This increase led in its wake all the values of the sector: 8% for ether, 7% for the XRP of Ripple, etc.
The reasons for this rise are mainly technical: massive purchases were triggered after the passage of the 8,150-dollar mark, a resistance point on which the prices had stumbled for 12 days. Other positive points are to be sought from institutional investors: the Chicago Mercantile Exchange (CME), one of the largest US futures, recorded on May 13th a record exchange volume with $ 1.3 billion purchased bitcoins. Another indicator showing renewed interest: queries for the term “Bitcoin” have tripled since the beginning of the year on Google (they remain nevertheless five times lower than when they peaked in December 2017 when a bitcoin traded for about $ 20,000).
Some news suggesting that crypto-assets will be increasingly used in everyday life were also released last week: the BBC announced that Facebook would launch its “Global Coin” in the first quarter of 2020 and US telecom giant AT &T has also began to accept cryptos for bill payment. On the other hand, the SEC once again pushed back to August 29 its decision to accept a Bitcoin ETF. This possibility is considered by most analysts as one of the most important upside factors in the future.
Now, the next point of resistance is around $ 10,000, a threshold reached for the last time in May 2018. Be careful though if you want to invest: unlike a share whose price is based primarily on the bottom line of a business, Bitcoin relies solely on supply and demand. It is therefore not impossible for speculators to take advantage of the recent rise to bet down.
Furthermore, some specialists are wary however of this new flight. The strategists of JPMorgan Chase & Co expressed their concerns that Bitcoin has exceeded its “intrinsic value”, while admitting that it was difficult to apply this concept to a digital currency. “This divergence between real values and intrinsic values echoes the peak of late 2017 and, at the time, this divergence was solved mainly by a reduction in real prices.”
Bitcoin was created in 2009 by a unknown individual, hiding behind the pseudonym of Satoshi Nakamoto. Its value is based on the fact that the quantity of bitcoin in circulation is defined in advance, and can never exceed 21 million.
For the supporters of this innovation, bitcoin can therefore ultimately play the same role as gold. However, the sharp fluctuations of this currency have mainly demonstrated its volatility and make it a risky investment. In addition, several cases of theft due to computer hacking have shown the risks concurrent to a digital asset.
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