Bitcoin price breaks psychological barrier of $10,000 after months

by Jawad Wallace
Bitcoin price breaks psychological barrier of $10,000 after months

At the weekend, Bitcoin broke the psychological barrier of $10,000 for the first time since October. One reason for the price recovery is the upcoming halving.

Similar to gold, the cryptocurrency Bitcoin is considered a safe haven for many investors when there are crises or economic turbulence. Whether this is justified in view of the volatility of the Bitcoin price remains to be seen.

Against the backdrop of the global negative effects of the corona virus, Bitcoin jumped above the $10,000 mark for the first time since October.

Bitcoin went up 40 percent since the beginning of 2020

After that, things went downhill again because of the profit-taking. On Monday evening, the Bitcoin price was around $9,800. How strong the upward trend was can be seen, according to Coindesk, by the fact that there were only increases in prices in the five days before.

Bitcoin saw a similar trend in autumn and the cryptocurrency‘s price has risen by 40 percent since the beginning of this year.

Observers also caused the introduction of trading in Bitcoin futures contracts on the US exchange CME.

Experts: Halving as a trigger for price jumps

Experts consider the main reason for the apparently increasing interest of investors in Bitcoin again, the upcoming halving. And thus, the psychological barrier of $10,000 for Bitcoin is passed once again.

The reward miners receive for mining bitcoins is halved from 12.5 bitcoins per block to 6.25 bitcoins. The reward is halved every four years. In the past there have always been massive price jumps.

You may also like