Bitcoin has suddenly soared, surging toward $10,000 and returning the bitcoin market to its pre-coronavirus pandemic bull run.
The bitcoin price, up over 30% since the end of March, has almost erased its Corona-virus crash losses—and is outperforming the U.S. S&P 500 index as well as most other major markets.
One of the world’s largest bitcoin mines is located in the SanShangLiang industrial park on the outskirts of the city of Ordos, in Inner Mongolia, an autonomous region that’s part of China. It’s 400 miles from China’s capital, Beijing and 35 miles from the the city of Baotou .
Bitcoin leaped higher last week, nudging $9,000 per bitcoin before falling back to trade around $8,800 on the Luxembourg-based Bitstamp bitcoin and cryptocurrency exchange.
Bitcoin is now trading at a critical inflexion point, where significant Fibonacci retracements, 50-day moving averages and 10-day moving averages converge on the daily chart,”
Analysts at Singapore-based bitcoin index fund Stack wrote in a note, that the turning of this resistance to support could see “further price action upside towards $9,300” but cautioned potential investors over “short-term headwinds.”
The majority of investors in the market are bullish, with many having a long-term investment horizon unfazed by recent volatility.
This overall sentiment could act as support for the bitcoin price over the next few weeks, though we aren’t entirely out of the woods yet.
Rich Rosenblum, co-head of trading at algorithmic digital assets trader GSR, is pointing to a “clearer path” back to economic normalization and “the impact of the economic stimulus” as driving “positive macro sentiment.”
The bitcoin price has recently outperformed most other assets, with bitcoin’s year-to-date returns surpassing gold, up around 25% and 12% respectively, since the beginning of the year.
Bitcoin’s rally has also eclipsed recent gains made by the S&P 500, which is down around 10% so far into 2020.
Bitcoin, a digital currency designed as an alternative to state-backed fiat money, was created in the midst of the 2008 global financial crisis—but no one knows who made it.
Forbes / ABC Flash Point News 2020.