Bitcoin, the largest cryptocurrency by market cap, today topped $ 10,000. It peaked at $ 10,023 at 10.10 am UTC.
Bitcoin price fell after its peak; By 11 am, it had dropped to $ 9,927. Then one last hurray at $ 9,985 before hitting its current price, $ 9,954.
That Bitcoin has topped $ 10,000, if only for a few minutes, is proof that its drought period is ending. Bitcoin’s price has barely changed for almost two months and only now its fate begins to change.
The last time Bitcoin’s price exceeded $ 10,000 was on June 2. Then the Bitcoin price peaked at $ 10,200, according to metrics site data Currency Market Cap. But it wasn’t going to last and Bitcoin was hovering around $ 9,200 for the rest of June and all of July, until now.
The $ 10,000 price point is important to Bitcoin because that was roughly the price of Bitcoin before the coronavirus-inspired market crash earlier this year, which pretty much cut the price of Bitcoin by two in as many days. Bitcoin has been recovering from the crash since then, and exceeding $ 10,000 would mean that it has fully recovered.
One can only speculate why Bitcoin has increased. It may be because there is a lot of interest in DeFi, or decentralized finance, right now. DeFi refers to non-custodial financial products, most of which live on Ethereum. Ethereum today peaked at $ 316, its highest price since July 2019.
Before today’s price increase, many Bitcoin made it onto the exchanges, according to a recent Glassnode report. For the first time since January, more Bitcoin entered exchanges this month than they left.
Another thing that supports this theory: Bitcoin is losing dominance of altcoins. According to CoinMarketCap, Bitcoin’s dominance of the cryptocurrency market is only 62%, the lowest since last July.
“So it makes sense [that] Net bitcoin flows to exchanges start to pump again, as most investors and traders use exchanges to switch from BTC to [altcoins]”Said Pedro Febrero, market analyst at Quantum Economics, Decipher.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
