Bitcoin Below $50K Level, So Is The Crash Coming?
Bitcoin is still struggling to break above the psychological support level of $50,000 as the…
Bitcoin made gains in morning trading today to hit a new record for 2020. As it rose from a low of $ 16,971 to a high of $ 18,000. With the leading cryptocurrency gaining 6%.
Altcoins also moved in tandem with the leading cryptocurrency as some saw impressive gains, with Ripple posting a gain of more than 10% while Litecoin, Polkadot (DOT), and Aave saw gains of around 9%.
The total market capitalization of cryptocurrencies increased by about $16 billion and is now around $486 billion. At the same time, Bitcoin’s dominance has fallen below 64%.
After a month and a half of Bitcoin’s impressive performance. It seemed like a matter of time before the asset rose to an all-time high near the $20,000 it hit at the end of 2017.
Bitcoin recorded gains of more than 250% from its mid-March low below $ 4000. And its upward momentum was driven by inflation concerns among investors and traders alike. Global central banks have introduced interest rates close to zero while committing to quantitative easing to reduce the economic slowdown caused by the Coronavirus pandemic.
Expansion policies have led to a decrease in the yields on government bonds. And at the same time, they also caused the decline of the US dollar, which reached its peak in March 2020. Prompting investors to search for investment opportunities elsewhere. Bitcoin benefited from those stimulus policies, and many agree Traders contend that it will continue to attract capital as long as central banks print money.
Crypto experts envision that the cryptocurrency will continue in a relentless bullish trend supported by long-term bullish fundamentals. And will likely reach a previous record high of $ 20,000 next year.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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