BITCOIN 3 REASONS WHY BITCOIN PRICE BROKE ABOVE $9K TODAY
Story by: EMILIO JANUS
The Lunar New Year always has an effect on bitcoin trading volumes, as Chinese traders take a few days off to celebrate. Despite cryptocurrency trading being technically banned in China, workarounds whereby traders use other Asian markets mean that it is still statistically significant.
BitMEX CEO Arthur Hayes predicted that volatility and trade volume would ‘nose-dive’ as the New Year approached. Indeed, in the week leading up to the New Year, daily volumes dropped by 50%, as BTC price followed them down from $9150, reaching as low as $8325 on Sunday.
Since Sunday’s low, volume has already regained almost all of the value previously lost, and prices have risen steadily to reflect that increase. While the Coronavirus may have meant an extended holiday for many Chinese, orders to stay at home don’t apply to those working outside of the law.
GLOBAL CRYPTO MARKET CAP RISING
As Bitcoinist reported yesterday, the total cryptocurrency market cap grew by over $17 billion in just 48 hours. It has continued to grow at a more modest rate since then, but is currently just $1.2 billion short of the psychologically significant $250 billion mark.
The market cap was last at this level in November, during the seven-month bear market when cryptocurrency prices were on the way down from their late-summer 2019 highs.
Regaining this level would be a strong indicator that this trend had reversed, and that a bullish cycle is once again underway.
THE FEBRUARY BEFORE THE BITCOIN HALVING
As February rolls ever closer, the market cannot help but consider historical data, which highlights the month as traditionally one of the more bullish for bitcoin. Of course, this doesn’t give any guarantees, and in fact we are closing out January, having bucked its usual trend of being a bearish month.
For now, price just has to hang onto, and indeed build upon, that $9k.
Original story: https://bitcoinist.com/3-reasons-why-bitcoin-price-broke-above-9k-today/
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