We have been seeing a decline in the value of bitcoin for quite some time, but for the last few days, the value of the bitcoin has crossed $10,000 for the first time since early June.
The COVID-19 pandemic has wreaked havoc on the global economy due to which Bitcoin came into a halving phase in May. The halving has changed the supply side of the bitcoin and increased the time needed for miners to find their break-even points. However, as things started to stabilize, the value of Bitcoin also surged.
Bitcoin Witnesses a Sharp Spike in its Value for the First Time Since June
The halving has changed the supply side of the bitcoin and increased the time needed for miners to find their break-even points.
The head of Business development at Cryptocurrency exchange Vijay Ayyar told that the people who had purchased bitcoins earlier were confused about whether to sell off their Bitcoin to the small-scale participants of the market that could lower the value and make it more charming for the bigger traders in order to increase their digital assets.
In an interview, Vijay stated,
This doesn’t seem to have happened. What we have unfolding is potentially re-accumulation by big players, joined by smaller traders in an attempt to push BTC higher past 10k ad more past 10.5K, which is the big resistance level, where BTC last put in high. We still haven’t broken the 10.5 K level, if that happens; BTC is probably running to 15K. All signs point to that at this point.
Although Bitcoin witnessed a surge last week, popular Wall Street indices were lower. On the other side, Gold has continued to rise in rate and has seen a record high in terms of price. Therefore, uncertainty still prevails over the future of digital currency.