Bitcoin Passes $120K in Remarkable Rally as EFTs Hit Highs
Bitcoin sent shockwaves through the cryptocurrency market today as it suddenly surged above $120K for the first time in a month and a half.
Quick overview
- Bitcoin (BTC) surged to $120,148 on Thursday, surprising investors after weeks of stagnant prices.
- The cryptocurrency is up 2.5% for the day and 9.76% over the past week, marking its best performance in some time.
- Analysts suggest that recent buying activity from cryptocurrency whales triggered the upswing after Bitcoin dipped below $110K.
- Despite the current government shutdown, the cryptocurrency market remains resilient, potentially paving the way for new record highs.
Bitcoin (BTC) is running with the bulls as it hit $120,148 (BTC/USD) on Thursday during a sharp upswing that has caught investors by surprise.
Bucking its recent trends, Bitcoin is now bullish and still climbing past $120K in a remarkable recovery that could end up creating a much higher support level from this point on. Analysts have been calling Bitcoin undervalued for a while now since it fell from a record high and struggled to make headway in a range between $108K and $114K.
BTC/USDBitcoin is now up 2.5% for the day and 9.76% for the past seven days, which is its best performance in a while. The coin had fallen to $109K by the middle of Thursday but then started moving bullishly up the charts with a dramatic swing that has caught the market by surprise. This is only made more remarkable by how low it had fallen already for the day and how swiftly the coin course corrected.
Why the Sudden Upshift for Bitcoin?
It would appear that a number of cryptocurrency whales were simply waiting for the right time to strike and that was when the coin fell below the $110K level and even hit as low as $108,936 earlier today. That signaled to investors that it was time for them to move and buy the dip.
The last time that Bitcoin has been so high was back in the middle of August when it hit its record high of $124,457. It was around that time that the coin fell sharply, and Bitcoin has not recovered until now.
Bitcoin has also been helped along by a strong economy, which has benefitted from a recent Federal Reserve rate cut that indicates economic resiliency. Stocks are hovering around their record highs and are helping to create a beneficial environment for cryptocurrency to thrive.
The current government shutdown has not hindered either the cryptocurrency market or stock market. Usually investors will draw back in fear when this kind of event occurs, but that is not the case here. It may be a similar effect to Trump’s tariffs and how the market is reacting to them. It appears that Trump’s political moves, however strange and unpopular, have been good for business. Investors may be trusting that his handling of the government shutdown will trickle down into something positive for the markets.
Whatever the reason behind Bitcoin’s reinsure, it is possible that the coin will be headed for a new record high. There is a danger that it will not stay high for long, though considering its two months of relatively low performance, so investors need to be wary about expecting strong short term gains from here.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save