The short lived bitcoin correction is over and the king of crypto is back in five figure territory once again. Another new yearly high has been hit but what is different this time around?
Total crypto market capitalization is closing in on $300 billion which is the highest it has been for half a year. The last time total cap topped $300 billion was in August 2019 when things were decidedly bearish.
BTC Bounces Back
According to charts from Tradingview.com BTC has closed in on $10,400 over the past few hours, its highest price this year.
The two day pullback dropped prices back to a little over $9,700 but since then the asset has gained over 6% to current levels which are around $10,350 at the time of writing. The next resistance level for bitcoin is around $10,750 which is looking likely following recent market momentum.
In a recent interview on CNBC’s ‘Fast Money’ analysts were asked if anything was different this time around. The question was in reference to the 2017 rally which took prices up to $20k before a slump below $4k the following year.
The first analyst to answer stated that a lot of the weaker players have now been shaken out. Additionally things are further down the road in terms of institutional involvement and central banks around the world are now researching their own crypto currencies.
The safe haven narrative was also mentioned and bitcoin was compared to gold yet again. Gold prices are also at a new seven high at the moment of around $1,570/oz according to the charts.
Back to the bankers the brief slot was concluded with this poignant take on the situation;
“In a world where central bankers are tripping over themselves to devalue their currency, bitcoin wins.”
Bitcoin's back above $10K, what's different this time around? $BTC pic.twitter.com/FiWU4AIDmE
— CNBC's Fast Money (@CNBCFastMoney) February 11, 2020
Bitcoin: A New Narrative
Last time BTC surged to new heights was very different, there wasn’t the economic pressure there is today and other safe haven assets were not mirroring its performance.
Global events such as geopolitical tensions and the Coronavirus (Covid-19) outbreak have added to the notion that bitcoin is a go-to asset in times of adversity.
Things are unlikely to improve anytime fast with regards to central bank monetary manipulation which can only strengthen the appeal of decentralized digital assets.
Add to this the approaching halving, associated supply and demand effects, and increase in Google searches and public interest, and there is plenty of fuel for another price busting rally.
Will bitcoin hit an new ATH in 2020? Add your comments below.