Updated: Mar 3
Bitcoin sailed through the much coveted psychological $10,000 level for the first time in 2020 over the weekend and it seems that prospects for the dominant crypto currency are looking up.
So what could possibly drive the price higher?
The Bitcoin halving is edging closer (Bitcoin Halving explained Blog)
In early May this year, the number of bitcoins entering the market every 10 minutes will halve from 12.5 to 6.25 bitcoins.
This is a built in deflationary tool within the protocol. If we accept that demand will stay the same (or even increase), then basic rules of supply and demand could see the price of Bitcoin rise.
Bitcoin bulls are doubling down
Bitcoin proponents are talking up Bitcoin’s prospects, such as Tom Lee of Fundstrat global advisers, who believes that Bitcoin could rise above its all-time high of $20, 000 and beyond, citing its average 6 month gain after breaking above its 200 day moving average is circa 190%.
Investors are switching out of more traditional assets that could be affected by the coronavirus. The virus has halted or disrupted manufacturing and commerce throughout China and it is still unclear what the true extent of the damage could be to the global economy.
Any investment in Bitcoin is classed as high risk and therefore only funds that you can afford to lose should be invested in Bitcoin other Crypto currencies or any other high risk investment for that matter.
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