Cryptocurrency NewsCryptocurrency Analysis

Bitcoin Soars Past $12,000 after Decoupling from Stocks

By October 22, 2020 No Comments

$12,000 is an important level from the technical analysis perspective of bitcoin. Bitcoin’s bullish momentum has been developing for more than a week and at the moment, BTC is nearly touching the $13,000 level. Many technical analysis experts are eagerly looking at Bitcoin and crypto enthusiasts are expecting further gains to come soon.

Bitcoin’s price increased by around 3.4% on Monday. Some altcoins like Dash and Monero followed BTC and their prices rose dramatically. The IMF held a virtual meeting focused on international payments and digital money. During this discussion, Jerome Powell stated that the central bank is assessing the pros and cons of digital currency but that they haven’t made a decision yet. He talked about Libra and called it a catalyst that attracted a lot of attention regarding the issue.

People are disappointed about the US government’s attempts to save the economy. Therefore, US stocks are dropping and investors are migrating to safe havens like gold and BTC. The Bitcoin market experienced a big rally in the previous week and BTC decoupled from US stocks. It is an important event and it can be a prelude for some big changes.

Bitcoin is a relatively new technology and the limited supply of BTC is a fascinating feature of the world’s first cryptocurrency. Because of these technical aspects and because of the entrance of the institutional investors to this space, many people and experts are bullish on BTC.

Top fundamental reasons for BTC’s growth

The macroeconomic context of today’s world is unique. The COVID-19 pandemic forced governments to print money and this printing is not controlled. Many investors are really worried about the consequences of this quantitative easing. They fear impending inflation and because of this, they are seeking safe havens like real estate, bitcoin, and gold. This causes a capital inflow to cryptocurrencies and BTC. Then, BTC may touch new all-time highs. 

Bitcoin’s supply is limited and no one can create new BTC coins at low. It is an important feature and gives BTC the potential to act a store of value. BTC is decentralized and the limited supply has been designed from day one.

Transfering Bitcoin is easy and people can use it for cross-border payments. Keeping BTC is easy and convenient – you just need a digital wallet. These advantages are accompanied by a kind of digital scarcity and all in all, we can call bitcoin an exceptional opportunity for many investors.

From a technical perspective, BTC is in a good position right now. It is above all the most relevant moving averages and it has remained above the $10000 level for more than 80 days. Many technical and chartists are bullish about Bitcoin’s price action and there are many bullish predictions in this space.

Final thoughts

BTC is an extraordinary opportunity and it has many advantages from both the technical and fundamental perspectives. BTC is a new technology and its monetary policy presents a unique alternative to fiat currency. It has anti-inflation properties and its limited supply is a new phenomenon. However, no one can predict the future and crypto space is full of risks. This article is for informational purposes and nobody shouldn’t be considered as investment advice.