According to the U.S. and EU markets and on some strictly regulated crypto exchanges like Coinbase and Bitstamp, the price of BTC surpassed $8,900 to achieve a new high during this year at $8,939. Within several hours, the price of Bitcoin climbed from $8,000 to $8,939, which is more than 11.7% against the USD.
The price of BTC jumped for 11.7% on Monday
On Monday, the 27th of May, the price of Bitcoin or BTC jumped as much as 10% almost to breach $9,000 as it extended the best one-month rally since before the historic surge of the token in 2017.
The largest crypto in the world climbed as much as 10% on Monday from levels late Friday, and it has been trading at $8,826, which is up 8.8%, as of 9:09am in New York. Some rival coins have been stronger at the beginning of the week. Litecoin or LTC, for instance, added more than 12% while Ether or ETH, which is the second largest token in the world, rose about 6.8%.
Crypto proponents are taking encouragement from the string of recent headlines which show greater interest in the space from some mainstream firms. According to the statements of AT&T Inc, it is going to permit customers to pay the bill with BCH or Bitcoin Cash and BTC. That followed the news which said that Fidelity Investments has been finalizing plans to purchase and sell the digital assets for institutional customers.
The recent upside movement of the price of BTC follows its 100% year-to-date gain against the U.S. dollar. As of the 27th of May, BTC is up 136% year-to0-date with the “real 10” volume of BTC hovering at $1.6 billion.
This “real 10” volume, which actually calculated the real daily spot volume of BTC, by evaluating the volume on exchanges which are known to have the verifiable capacity by Bitwise Asset Management, is up almost seven-fold since March of this year, indicating a definite increase in the interest in the asset class.
Three factors responsible for the recovery of BTC
When the price of BTC surpassed $7,000, the analysts, including global markets analyst named Alex Krüger, stated that the dominant crypto asset entered a bull market territory.
The price of BTC recovered to $7,000 on the 11th of May. Since that time, within three weeks, the price of BTC added almost $2,000, rising by 27%. This remarkable recovery of BTC may be mainly attributed to three different factors:
The rise from $3,000 to $7,000 placing BTC in a bull market territory, and raising momentum;
Volume on the regulated platforms such as CME surging, which indicates that an essential increase in institutional interest happens;
Volume on the exchanges and the popularity of Google Trends for the keyword Bitcoin rising, which signals the rebound of interest from the retail investors.
Behind these three factors is probably the block reward halving of BTC, which is actually expected to happen in May the next year. On every four years, the BTC blockchain network experiences a halving of the block rewards that actually decline the rate in which the miners produce new BTC.
Investors expressed essential optimism about the price rise
Miners also receive less BTC for the work of securing the processing transactions and the blockchain, and that actually leads to a drop in the supply of the asset in the global market.
Earlier in May, when the price of BTC was about $7,000, Krüger stated that the technical indicators actually suggest that the asset is overbought. However, he also emphasized that because of the momentum of BTC lately in 2017, despite the overbought signals, the BTC price went on to accomplish a new all-time high at $20,000 from $13,700.
The analyst said that last time, Bitcoin was this overbought on the 6th of December, 2017, with a price of $13,700. Back in those times, a parabolic move also ensued.
During May, even the investors that have expressed great optimism towards the medium to the lasting performance of BTC said that a pullback is possible and that a minor correction is going to be healthy for the market.
The crypto market has even shown no signs of an imminent correction, and it is also entirely possible that the market keeps on climbing without a substantial pullback as many have expected.