The price of bitcoin has refreshed the highs of January 2018 in the latest upside action.
The BTC/USD exchange rate on Wednesday soared above the $13,500 level. As of 1755 GMT, the pair was trading at $13,530, up more than 20 percent in the last 24 hours, according to data assembled by CoinStats’ cryptocurrency portfolio management app.
The surge took bitcoin’s cumulative month-to-date profits to more than 55 percent. At the same time, the asset’s yearly gains surged to as much as 300 percent, outperforming the benchmark S&P 500, Gold, and every other mainstream market.
Mati Greenspan, the senior market analyst at Tel Aviv-based brokerage firm eToro, noted that events unfolding in the global financial market are indirectly attributing to the rise in bitcoin prices. He told the Financial Times:
“Bitcoin is independent of governments and financial institutions, so the more you see an erosion of trust, the more the demand for bitcoin.”
Bitcoin at $20,000?
Following the close above $13,500, bitcoin has entered a ceiling-less area that could propel the price towards its all-time high of $20,000, believes cryptocurrency analyst Josh Rager.
“Why can Bitcoin easily hit $20k new all-time highs this month? Because the order book on BTC is thin With only 17+M in circulating supply and millions already lost we could be looking at only 13M-14M available to trade Many of these are held by hodlers not willing to sell now.”
The BTC price is further receiving support from a weaker US dollar. Federal Reserve declared last week that it would definitely cut rates in July. The US central bank also presented the possibility of further rate cuts in 2019.
Bitcoin is looking more bullish than ever, now when even mainstream financial companies like Fidelity Investments and TD Ameritrade are planning to offer regulated BTC trading and custodial products.