It was mainly in 2017 when Bitcoin became the centre of attention of many online transactions. It was because the value peaked at 20,000 US dollars. Since then, many people have found cryptocurrencies interesting and many industries have started embracing it.
One of these many industries includes the online gambling sector. There are now many online casinos that accept cryptocurrencies. It’s also not hard to find a Bitcoin casino that only caters to cryptocurrencies users. It’s a growing industry that many bettors are becoming keener on playing at such casinos.
Now, it’s been a while since the value of Bitcoin has reached the 20,000-value mark. It has even been a while since Bitcoin’s value has reached over 10,000 US dollars. However, the value of Bitcoin appears to be going up in the past few months.
The price of Bitcoin has recently been fluctuating to around 10,000 US dollars. The highest it recently reached is 10,180 US dollars, however, it quickly went down 9,600 US dollars. Resisting the 10,000-dollar mark right away.
There are a few factors that might have been affecting this. First is the Federal Reserve’s Federal Open Market Committee or FOMC meeting. Second is the liquidation of the 14 million USD of short contracts, and the resilience of the multi-year resistance area from 10,000 to 10,500 USD.
During the FOMC meeting, just before the spike in Bitcoin’s value, the Federal Reserve chairman Jerome Powell said that the jobs market might have hit rock bottom. Since the pandemic or March, many institutional investors started to become cautious about the stock market and this is mainly due to the state of the labour market.
The unemployment rate rose and this bothered many investors as it is also expected that the numbers will remain the same in the next few weeks. This is why investors tried to keep things safe by investing in low-risk bonds. Right after the FOMC meeting, the US stock market and Bitcoin price dropped.
Regarding the liquidated contracts, this happened in just 30 minutes on BitMEX alone. The price of BTC then rose to 100 US dollars on BitMEX. However, when the value reached 9,600 US dollars, it dropped by 4 per cent in less than 15 minutes.
That’s 2 million worth of longs that are liquidated. In about an hour, about 15 million USD of futures contracts were liquidated that quickly.
When futures contracts are liquidated, the price of Bitcoin could move quickly to either direction. In this case, BTC was playing around the 9,000 to 10,000-value marks.
The 10,000 to 10,500-value mark is Bitcoin’s multi-year resistance since mid-2019, and it is defended once again. The problem is that every time Bitcoin would reach this value, it would always meet a brutal pullback.
A cryptocurrency investor named Koroush AK said that the recent move of Bitcoin reduced the importance of 9,850 USD as another resistance level. He said, “This move was significant. $9,850 is now less important as a resistance. $10,000 is now more important.”
Now, people are still questioning whether Bitcoin will once again peak at 20,000 USD anytime soon now that it has been playing around the value of 10,000 once again. Well, recently, an analysis from Bloomberg found that it might. What’s even better is that it may actually happen by the end of this year.
Bloomberg analysis
The Bloomberg analysis document stated the following:
“Bitcoin is mirroring the 2016 return to its previous peak. That was the last time supply was halved, and the third year after a significant peak. After 2014’s 60% decline, by the end of 2016, the crypto about matched the 2013 peak.
Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend,”
There are also several analysts that shared their thoughts about this. They are saying as well that the value of Bitcoin may reach 20,000 US dollars before this year is done. The CEO of Celsius Network Alex Mashinsky seems to think the same.
“I’ve been talking about this 20k number since January. The halving is placing “tremendous deflationary pressure on bitcoin, and at the same time, we see a dramatic increase in the number of new people signing up and buying bitcoin. Increased demand, decreased supply beats out all the noise in the system and that will help us see these new highs in 2020,” He said.
Many are already saying that Bitcoin may really reach another peak by the end of this year and we can only just wait and see.