Amidst bullish sentiments that digital assets will continue to benefit in this ongoing monetary stimulus and unprecedented, the world’s largest cryptocurrency yet again rallied above $10,000 for the first time since mid-February.
At the time of writing the price of Bitcoin was $9,514.83 after it rose by nearly 5% on Tuesday to trade at $10,168.
This year has already been very fruitful for Bitcoin as it has advanced over 40%, while peer tokens, like Bitcoin Cash and Litecoin, have also posted double-digit gains.
However, the price of Bitcoin is still roughly 50% below its all-time high set before the collapse of the crypto bubble back in the fourth quarter of 2017.
On the basis of projections that digital tokens can benefit as governments and central banks across the Globe unleash stimulus measures to shore up listing economies most of the cryptocurrencies have witnessed good surges.
Notably there are also many top names of Wall Street that have embraced Bitcoin, under the context that against inflation in the current environment crypto-assets can act as a hedge.
In a note regarding this matter, Mati Greenspan the founder of Quantum Economics said, “The risk-on attitude and all the Fed stimulus is a huge tailwind for Bitcoin and the entire digital asset space.”
Greenspan further added, “If the Fed breaks down or if there is an erosion of trust in government-issued currency, then crypto assets may be used as a fail-safe.”
Notably this statement shows that the chief executive and founder of deVere Group, Nigel Green made a correct prediction when he said that there would be a price increase triggered by central banks and governments who aim to boost their economies.
Green’s statement reads as follows, “Bitcoin, of course, cannot simply be printed, but indeed, it is living up to its reputation as ‘digital gold’.”
There were also several Technical indicators that show a favorable backdrop for Bitcoin. As per the GTI Vera Convergence Divergence Indicator, which is used to measure ups and downshifts, Bitcoin managed to generate its first new buy signal since the first week of April. If Bitcoin is able to maintain this new surge, it could rally toward new annual highs. However, if the largest cryptocurrency is unable to maintain it a selloff could be in the offing.