The cryptocurrency market has lifted it head once again, and the market cap of the entire ecosystem is now above $228 billion. Just as reported by NewsLogical earlier, Bitcoin is gaining strength in the market. In the last few days, the leading cryptocurrency has been pressuring the market bears with several attempts to hit the $8,300 region and break further.
The path to breaking the key resistance has just been paved for Bitcoin, and the price of BTC has gone past $8,600 upward. Bitcoin’s price, while on the upside trend, hit the $8,630 point, exceeding it with a possibility for more high trends.
This marks the first significant BTC price surge since Monday. The upsurge seen by BTC to move above $8,500 is quite gaping as it came suddenly. Since the last 7 days, this is the first time Bitcoin will be visiting the $8,600 level.
Previously on Monday, Bitcoin spiked from nowhere to hit $8,350 after dipping to $7,800 during the weekend. Although the bullish race was truncated afterwards, but Bitcoin maintained a strong support above $8,100 since then.
At the time of writing BTC is priced $8,626with 5.1% added value against the US dollar. Bitcoin looks to have formed a new support above $8,300 considering it present trend.
Federal Reserve behind Bitcoin Rise
Pseudonymous cryptocurrency expert “Rhythm” correlated the price increase of Bitcoin with the announcement of the Federal Reserve.
He said: “Federal Reserve announced a restart of quantitative easing and the next day bitcoin’s hashrate hits a new all-time high and price rises 3%. Bitcoin is working exactly as designed.”
Yesterday, Federal Reserve Chair Jerome H. Powell announced that the central bank is going to be acquiring more Treasury bonds “soon” purposely to keep the country’s financial system in an outstanding shape.
The moment Powell made the announcement, experts foresaw possible growth for Bitcoin, and it is now happening.
Ikigai Asset Management’s chief investment officer Travis Kling believes the move would increase people’s trust in Bitcoin, calling Bitcoin “an insurance policy”.
To Kling, the move by Fed harbingers a market crisis with the US decision to add more dollar assets into the economy, which is synonymous to quantitative easing (QE).
Disclaimer: Our writers invest in cryptocurrencies and it is possible the author of this article has investment in any of the digital currencies discussed. Some times author's presented information may be laced with opinions. Treat articles as mere information and not as financial advice.