Bitcoin (BTC) tops $8,000 as crypto rally continues

Bitcoin (BTC) has seen broken through another major barrier following a big move on Monday and a Tuesday session that has so far been relatively stable.

After a relatively quiet Monday morning session, Bitcoin rallied in the afternoon and managed to top the $8,000 level for the first time since July 2018. The digital coin ended the session at $7,814.92, well above its opening price on $6,971.18.

BTC recaptured the $8,000 level in today’s early trading, as its price rose to as high as $8,265.05, according to data from digital currency tracker Coinmarketcap. The cryptocurrency has seen some ups and downs since then and is currently trading around the $8,050 mark.

Bitcoin’s recent gains come after a slew of positive news such as Facebook relaxing its advertising policy regarding blockchain and report that Fidelity Investments plans to launch Bitcoin trading within few weeks. Yesterday, Bakkt’s announcement that the company aims to commence tests of its Bitcoin futures product in July provided further boost to the market.

According to Andy Brenner at National Alliance Securities Bitcoin’s latest surge might have also been partly driven by Chinese investors, looking to diversify amid weakness of the yuan against the US dollar.

We can see that the bid for bitcoin in this latest run has coincided with a big down tick in the value of the Chinese yuan versus the dollar,” Brenner told CNBC on Monday.

Some, however, are not convinced that BTC’s recent gains are organic. In a recent blog post, digital currency critic David Gerard speculated that the rise was the result of big Bitcoin holders trying to squeeze short sellers. He also thinks that the BTC price might have been propped up by an issuance of Tether (UDST) stablecoins.

In today’s trading, the Bitcoin price stood at $8,081.34, as of 16:23 BST. The digital currency has gained 6.2% in the past 24 hours. Is total market capitalisation currently stands at $143 billion, which represents 59.4% of the total value of all digital currencies.

Featured image: Yuri Shebalius / Shutterstock.com

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