After weeks of stagnation, Bitcoin jumped over 11000 USD this week. Late on Monday, the world’s biggest cryptocurrency surged to a new 2020 high of $11,394. The bull run meant almost 95% of Bitcoin’s supply was in profit. Bloomberg released a mid-year report predicting BTC could soon rise above $12,000, with on-chain and off-chain indicators suggesting that the asset will appreciate.
Bitcoin Investors React Positively
Indeed, Bitcoin holders didn’t have to wait long for the next surge. As the weekend began, BTC surpassed $11,600 for the first time in 12 months, prompting some investors to believe there would be little resistance until $15,000. This is not news to investors as Bitcoin already showed steady growth assuring them of a safe investment scheme. Bitcoin’s investor base is “highly favorable” for a continued move up, said Yan Liberman, a former associate at Deutsche Bank and co-founder of Delphi Digital. “The supply on exchanges is close to 12-month lows,” said Liberman. He had earlier said this signals a strong commitment to holding bitcoins for the long term. The percent of bitcoin’s supply that has not moved in the past year is at all-time highs, he added.
How Bitcoin Found Its Way Up
There was further excitement as Bitcoin surged even further to $12,000 — but unfortunately for the bulls, the market drama was far from over. On Sunday, Bitcoin plunged by 13% within minutes, taking it as low as $10,550. The sudden cascade in liquidations may have 2 underling reasons:
- low trading volumes on weekends
- a market that swayed heavily to longs or buyers
With the Fear and Greed Index hitting a score of 80, there are many questions to ask the players of this market. On the other hand, many were shocked to witness that Bitcoin jumped over 11000 USD threshold. Bitcoin has seen 10k USD earlier temporarily in response to riots in the US over the death of George Floyd. Eventually, Bitcoin gained 24% in July, according to Messari, a relief to bullish traders after a 3% loss in June.