The long-awaited 5-digit Bitcoin price target is now here. On Tuesday, February 11th, after a few ups and downs, Bitcoin rose from around $9,800 to well above $10,000 in a matter of hours. In fact, the high on Tuesday of $10,351 was the highest price for Bitcoin in several months. The high also broke through a barrier which again placed the popular coin in solid bull territory.
Although the price of Bitcoin had already been flirting with five-digit figures, a statement made by the chairman for the US Federal Reserve, Jerome Powell, helped BTC’s jump into new highs. Powell spoke about the need for increased privacy for all cryptocurrencies, in light of directions taken by the Chinese government with their state crypto and blockchain projects. According to Powell, the US would not likely be accepting or attracted to a transparent crypto option.
Powell’s comments on the need for greater privacy where cryptocurrencies are concerned did instill a great deal of confidence among buyers of the popular coin because it appeared the US Gov was somehow ensuring anonymity moving forward. That may not be entirely true, however, as some have pointed out.
Advisors in the crypto and blockchain space have repeatedly pointed out the fact that many governments around the world, including the US Government, have already started to ensure access to records by directing developers of new blockchain tech to build back doors into their systems and networks. In short, it may mean that any crypto moving through mainstream crypto channels based in the US and elsewhere may soon by more transparent than many would like – more on that as more information becomes available.
Other factors supporting a Bitcoin bull run
There are several other factors pointing to increased BTC prices, as well. The Corona virus being one, the upcoming Bitcoin halving event, and the recent global acceptance BTC. All play their part in their own right, and the effect of each one seems strong enough to modify changes on its own.
Every for years, BTC undergoes what is called ‘halving’. The schedules halving event reduces mining capability by 50%. The incoming halving has increased bullish trading patterns as can be seen in various markets, including the derivatives markets and the spot markets. Looking at the derivatives performance it is fairly clear that there is plenty of support for BTC at the moment. It is the kind of support that gives Bitcoin prices a very good leg to stand on. Increased volume can also indicate greater confidence in BTC and that can also be seen on the charts.
Since the near war between the US and Iran, BTC has been on a steady rise. It is considered by many to be a safe haven for funds in areas where finances are unstable and in places where government holds on citizen assets have become an increasing reality. Now, with fears of a spreading flu virus captivating a global audience, that sentiment only grows stronger. More and more people are turning to cryptocurrencies in light of recent global instability and that has pushed prices ever skyward.