Bitcoin price hit $10,000 for the first time in 2020 on February 9 capping a remarkably strong start to the year. The moment also marks a major milestone with the cryptocurrency rising to its highest price since October last year. Crossing the $10,000 barrier becomes the epitome of an upward momentum with the asset recording a 40% growth year-to-date.
Market data indicate 3:00 a.m. UTC as the exact time the BTC/USD hit $10,000 on the background of huge market volume. The upward price trajectory was sustained for the next few hours peaking at around $10,100 before retracing quickly to around $9,900. At the time of writing, Bitcoin was trading above $9,850, a 2.5% decline from its recent highest price.
The journey to reclaim the $10,000 price has taken close to four months with Bitcoin trading up and down during this period. The cryptocurrency traded for as low as $6,400 in this duration before turning bullish.
Much of the price rise was recorded in an explosive January which culminated in 35% gains. The solid start to the year provided the perfect launch pad for Bitcoin price to regain its five figure valuation only in the early days of the second month.
Crypto market analysts have pointed to a number of factors to explain the sustained upward trend leading up to Bitcoin hitting the symbolic $10,000 price. Of these, the Bitcoin futures markets has been identified as one of the major influences catalysing the price rise. Accordingly, the futures market has been expanding rapidly thus putting an upward momentum on the asset’s price in the near term.
Additionally, traders anticipated strong directional movements in the price of the cryptocurrency with a likely support price set at $9,550. The Bitcoin price breaching of this barrier was anticipated as the lead up to reaching $10,000. Crypto analyst Mati Greenspan agreed with these suggestions saying
This isn’t the first time bitcoin has been valued above $10,000 and it might not be the last, but it is the first time that the valuation is justifiable based on fundamentals of the network.
The solid Bitcoin performance was largely replicated across the market with a number of major altcoins registering positive price rises. Ether, EOS, and Bitcoin SV recorded 2.27%, 8.27%, and 24.24% daily gains respectively. The weekend proved to be a source of positive news with many other cryptocurrency mirroring Bitcoin’s success.
The leading cryptocurrency however, continues to exert its dominance in the market at over 63% and a market cap of over $280 billion.
Image courtesy of Pixabay
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