Bitcoin has undergone yet another rally over the past 24 hours, rallying from yesterday’s lows near $13,300 to highs of $15,500. Below are three plausible reasons why BTC is skyrocketing.
November 6, 2020 | AtoZ Markets – For many Bitcoin (BTC) enthusiasts, the flagship cryptocurrency has arrived on Wall Street with aplomb. At the time of writing, buying one digital unit of Bitcoin now costs over $15,500.
Bitcoin jumped 8.7% yesterday, to $15,200, the highest gain since late July. At such levels, the flagship cryptocurrency was traded in early January 2018.
The rise in bitcoin price took place against the backdrop of a sharp weakening of the dollar, caused by expectations of Joe Biden‘s victory in the US presidential election. Against this backdrop, gold and stock indices have shown significant growth.
3 reasons why Bitcoin price is rallying
- It was critical for bitcoin to break the resistance area near $12,000. Bitcoin succeeded, after which the coin had no significant obstacles to at least repeat the rally towards 20,000. All obstacles were crushed, and now any news background is perceived as positive for the cryptocurrency.
- Rising prices with a simultaneous rise in the volume of active positions may mean that new money is coming into the market.
- The US elections are gradually drawing to a close and the details of the fiscal stimulus are becoming clearer. Any such package could lead to further weakening of the dollar and the growth of bitcoin.
While bitcoin continues to be quoted 30% below its historic highs in tandem with the dollar, it has already exceeded the record levels of December 2017.
Very soon, interest in the crypto market may become wider again, moving from the first cryptocurrency to the top 10 and then to a wider list of altcoins. The first signs of this movement can already be noted. In this case, we see the positive dynamics of Ethereum (ETH).
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