Bitcoin has suddenly soared back above $10,000 after a volatile few days that saw it breach the psychological barrier for the first time this year.
The bitcoin price, which was earlier today seen trading at under $9,700, surged to $10,380 on the Luxembourg-based Bitstamp bitcoin and cryptocurrency exchange—part of a broader rally that some have suggested is very different to the 2017 bitcoin bull run.
[Updated: 3:44am EST 02/13/2020] The bitcoin price has held above $10,000 almost 48-hours after breaching the key level for the second time this year, apparently finding a new floor. When the bitcoin price broke above $10,000 last weekend it quickly fell back as traders and investors cashed out to book profits. This latest foray above $10,000 has held so far, though the bitcoin price has dipped with bitcoin moving sharply lower in the early hours of Friday morning. The bitcoin price was seen trading at $10,150 on Bitstamp earlier today before recovering slightly—now down around 2% for the last 24-hour trading period.
Meanwhile, the second and third largest cryptocurrencies, ethereum and Ripple's XRP, have continued to soar—both up around 5% over the last 24-hour trading period.
The bitcoin price has been climbing steadily so far this year but remains far from its all-time ... [+]
The cause for the latest rally was not immediately clear, however, the bitcoin price has been on an upward trend since mid-December.
Earlier today, some huge bitcoin trades were made, recorded by tracker Whale Alert, with some $360 million worth of bitcoin moving between two mega trades.
The bitcoin market has been known to be moved by large trades, especially in times of low market volumes.
The bitcoin price, up almost 50% since the beginning of 2020, smashed through the key $10,000 barrier last weekend, signalling the latest bull run could be just getting started.
Bitcoin's recent rally has been largely put down to traders and investors gearing up for the looming May bitcoin halving event, which will see the number of bitcoin rewarded to miners cut by half.
Many are hoping the 2020 bitcoin halving will see a repeat of the last cut to supply, back in 2016. Bitcoin prices doubled in 2016 and soared 13-fold the following year.
"The underlying driver is the bitcoin halving event in May," said Gavin Smith, chief executive of Hong Kong-based bitcoin and cryptocurrency exchange Panxora, adding: "Previous halving events have seen some of the larger participants hold off on releasing bitcoin into the market in anticipation of a rise into the event."
Bitcoin's 2020 price surge has emboldened many long-suffering bitcoin bulls, who have been quick to talk up the market and bitcoin's prospects.
The bitcoin price suddenly moved sharply higher earlier today.
"A lot of good things are happening with bitcoin this year," Fundstrat Global Advisors cofounder Tom Lee told CNBC yesterday, pointing to bitcoin's upcoming halving, bitcoin acting as a safe haven during the coronavirus sell-off, and geopolitical tensions between the U.S., Iran and China.
"I think bitcoin could rally very strongly from here," Lee said, blaming the Trump administration's negative outlook on bitcoin for last year's sell-off and suggesting the upcoming 2020 elections could change the landscape in the U.S. for cryptocurrencies.
"Bitcoin should return to and move beyond its all-time high some time this year," Lee added, putting "bitcoin at $27,000."
However, despite bitcoin's stellar performance over the last few weeks, it's being handily beat by many smaller cryptocurrencies—some of which have recently made three-digit percentage gains.
Minor digital token tezos has recently broken into the top ten cryptocurrencies by market capitalization after gaining over 400% in the last 12-months.
