In the last hour, the price of Bitcoin (BTC) broke out of its side range to briefly break above the $ 9,500 level. The move comes after a slight increase in daily trading volume since Monday (July 20) and traders will now see if the top-ranked digital asset on CoinMarketCap can be $ 9,500 and hit a daily high above $ 9,775.
Perhaps the move is purely technical, as the price of Bitcoin has been compressing in a narrower range of higher lows and lower highs since early June, or possibly investor sentiment has been fueled by recent events in the news.
Crypto market weekly price chart. Source: Coin360
Earlier today, Cointelegraph reported that the Office of the Comptroller of the Currency (OCC) has given permission to allow federal banks authorized by the United States to provide cryptographic custody services to their clients.
This is a positive step forward, as it eliminates some of the rigamarole involved in cryptocurrency acquisition and storage, meaning that cryptocurrency investors will eventually be able to keep their digital assets at the same bank where they hold their checking, savings accounts and brokerage.
The recent announcement by the European Union to start another $ 857 billion stimulus round and the expectation that the US Federal Reserve will do the same with a $ 1 to $ 2 trillion economic stimulus package as well It could be fueling investor belief that as long as the Federal Reserve is in print, stocks will rise and Bitcoin will soon make another run at $ 10,000.
As for the new stimulus rounds, Gemini Exchange Co-Founder and CEO Tyler Winklevoss suggested that:
“The Fed continues to set the stage for the Bitcoin bull run.”
Central bank impression continues to drive markets higher
In traditional markets, silver started the week with a strong pump that completed a good cup and handle pattern in the daily time frame, and as of this writing, assets increased 19.25% for the week.
Gold has also continued its upward trajectory pushing to a new high at $ 1,874 today. To date, gold has gained 29% since the coronavirus-driven market correction in mid-March.
The S&P 500 and Dow also continue to push a little more each day, further proof that investors expect the Federal Reserve and central banks around the world to continue to launch stimuli.
As previously mentioned, expansive monetary policies are clearly boosting investor confidence in the markets, regardless of any weaknesses that analysts may detect in the economy.
Remember, as the old saying goes: The stock market is not the economy.
Bitcoin daily price chart. Source: Coin360
Now that the price of Bitcoin has managed to close the day above $ 9,500, investors will look to see if a higher high above $ 9,775 can be achieved, after which an opportunity at the $ 9,900 level comes into play. – $ 10,000.
Altcoins also recorded moderate gains as the price of Bitcoin increased earlier this week.
Ether (ETH) rebounded by almost 12%, XRP gained 2.88%, and Litecoin (LTC) added 2.86%.
According to CoinMarketCap, the total capitalization of the cryptocurrency market is now $ 284.7 billion and Bitcoin’s dominance rate is 61.7%.
