Bitcoin prices have risen sharply today, climbing upwards of 40% and breaking through the psychological $10,000 level after suffering a rough few days.
The world’s most prominent digital currency reached as much as $10,332.41 around 9:45 EDT, CoinDesk figures show.
At this point, the cryptocurrency was up 39.8% from the intra-day low of $7,393.26 it fell to earlier in the day, additional CoinDesk data reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Much of the day’s gains took place within short periods of time, as bitcoin rose sharply during a few hours between the late morning and early afternoon, and then enjoyed another strong rally that started after 8 p.m. EDT.
The digital currency rose to more than $8,700 as a result of the first upward movement, and extended these gains to surpass $10,000 later at night.
This bullish activity took place after bitcoin suffered some notable losses earlier this week, dropping to its lowest since May.
The cryptocurrency’s price declined leading shortly before Facebook CEO Mark Zuckerberg provided Congressional testimony regarding Libra, a proposed digital currency project.
More recently, technical analysts emphasized that the digital currency was approaching a bearish formation called a Death Cross, which would provide a signal of further losses as a result of a 50-day moving average (DMA) dropping below a 200-day moving average.
However, markets received a boost earlier today, when Xi Jinping, president of the People’s Republic of China, emphasized the significant opportunity presented by blockchain technology.
Bitcoin’s upward movement forced speculators to close out short positions, triggering further upside.
The cryptocurrency’s continued rise helped trigger FOMO (fear of missing out), noted analysts, which fueled additional gains.
John Todaro, director of digital currency research for TradeBlock, commented on these developments.
“Leading up to Mark Zuckerberg’s Libra hearing, bitcoin had sold-off as many traders put on bearish positions,” said Todaro.
“The technical set up looked negative, but then President Xi Jinping’s commentary around blockchain technology was an unexpected positive catalyst that caught some bearish traders off guard in my view, leading to the upward movement which likely brought in more speculators as BTC traded above key thresholds,” he added.
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, also weighed in, emphasizing the key importance of the comments involving China.
“There were quite a lot of liquidations but I think it’s still mostly about President Xi’s announcement because people know that his green light will cause a ripple effect across China,” he stated.
“The space needs China’s involvement,” added Garcon.
“If China would’ve never banned crypto trading and exchanges the space would be a lot bigger today,” he said.
“Having China onboard, in my opinion, is just as good if not better than having America onboard.”