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5 Reasons for Bitcoin’s Skyrocketing Price in Just 24 hours

Highlights

    Bitcoin, which was struggling to cross the $10,000 mark from the past couple of months had already touched $11,000 before bouncing back to $10800 at press time.

    The largest cryptocurrency has performed exceptionally with a gain of over 6 percent in a single day.

    The analyst and market researchers predict a big bull run for the digital asset by year-end.

Bitcoin Price Maintains above $10000 

Bitcoin price soared above $11000 for the first time since 2019, but yet again fell below the mark. From the time, the price seems to have been maintained above $10900. The surge in the price has stormed the crypto market not only the top cryptos but also it has paved the way for the other altcoins. 

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The digital asset which witnessed a breakout above $10000 on 02 June 2020, could not stand for more time. If it fell miserably within a few hours. Later it turned sideways fluctuating within a narrow range till it broke the barrier to cross $10000 first and also $11000 within no time.

At the time of reporting, Bitcoin is trading at $10815 against USD, showing a bullish trend of 6.73 percent within the past 24Hrs. 

Top 5 Surprising Reasons For Bitcoin Skyrocketing Price

Speaking on market scenario, there can be no solid reasons that might have backed the recent bull rally. However, the analyst and market researchers suggested possible reasons listed below; 

The US banks Holding Cryptos

The bank regulator in the US Comptroller of the Currency (OCC) recently permitted them to hold the cryptocurrencies on behalf of their customers. The banks could now hold the cryptographic keys and offer the crypto custody services to their customers. This news bought a huge wave in the crypto market and this could be one of the major reasons for the Bitcoin bull run.

Growing Defi Market

As Coinpedia reported earlier, quarter 2 has witnessed a huge growth in the Defi space with more than 30 percent growth in the funds locked. The tendency of the traders towards the Defi space possibly be the biggest reason that led to the uptrend in the price of Bitcoin and Ethereum. The crypto community is shouting 2020 as the year of Defi while 2019 was considered as the year of IEO. 

Increase in the BTC Hash rate

Recently, the bitcoin hash rate attained its all-time high of 124TH/s. The hash rate had suffered a downtrend after the halving event which occurred in the first half of May 2020. With the increase in the hash rate, mining activity too soared which may have resulted in the surge in the bitcoin price.

Dollar Crash and Increase in Inflation

The current pandemic situation has bought the world’s economy to its knees. Although the international market is capitalized on the USD, the COVID-19 has shaken the dollar roots, giving birth to inflation. Therefore, people are finding other options to safeguard their funds due to the high uncertainty on the dollar. 

As Gold proponent, Peter Schiff described in his debate over ‘Bitcoin and Gold’, Dollar index is tanking, people are trying to get out of the dollar. 

I think the dollar is gonna crash 

While we may not get out of this COVID recession very soon, people are eagerly looking to invest in potential assets such. This might have boosted the demand in digital currencies such as Bitcoin and traditional assets like Gold.

FOMO among the Trader

Bitcoin and many other major altcoins had a bullish trend, with new altcoins entering the top 10 list for the first time. Hence, the FOMO factors might be surrounding the traders which tend them to invest in their favorite digital asset. Specifically, as FOMO begins, Bitcoin dominance began increasing on the CMC chart. As per Coinmarketcap, Bitcoin dominance is up by 7 percent, making it 62.7 percent. As Joe DiPasquale, CEO of crypto fund manager BitBull Capital says; 

“Meanwhile, bitcoin FOMO [fear of missing out] is currently on display as BTC dominance is rising again and [altcoins] are posting losses as BTC rallies today. The FOMO, coupled with increasing volumes indicates that this rally may finally push bitcoin to conclusively beat yearly highs,” 

Conclusively, Bitcoin had a major breakout recently and successfully maintained above the $10000 mark. However, if continued with the same trend, the predictions done on Bitcoin by crypto bulls like Max Keiser, Pomp, etc might also be seen as reality.

So readers, what’s your view on above Reasons for Bitcoin Skyrocketing Price? Let’s discuss on Twitter. Tag us @Coinpedianews

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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