Bitcoin breaks through $7,500, hitting its highest point since the March crash

Author: Xiu Mu

Source: bitpush.news

According to Bitpush data, Bitcoin, the cryptocurrency with the largest market value, soared to over $7,500 on Thursday, reaching its highest point since the sharp drop in March.

As Bitcoin nears the top of its recent trading range, it may have enough momentum to break through $8,000, said Ed Moya, market analyst at Oanda.

“Bitcoin is starting to attract interest from individual investors again,” Moya wrote in a note. “As global economic stimulus shows no signs of easing, some traders are turning to cryptocurrencies as a hedge against currency wars.”

Over the past month, cryptocurrencies have largely moved in sync with risk assets, falling when stocks fall and following them up. Traditional capital markets are recovering amid optimistic expectations that parts of the U.S. economy may soon begin to open up.

The price trend of Bitcoin is also consistent with the results of a Twitter survey. According to a poll initiated by cryptocurrency analyst PlanB on Twitter on Thursday, as many as 81% of voters regard Bitcoin as a long-term investment, 7.3% use Bitcoin for transactions, and 3.1% use Bitcoin as a means of payment and shopping.

In the crypto futures market, investors have also shown strong interest in Bitcoin derivatives. Data from data provider Skew shows that since Bitcoin fell in March, open interest on both Bakkt and CME exchanges has hit a new high.

On March 13, Bakkt’s open interest dropped to $4.8 million, and has since reached $6.9 million as the Bitcoin market stabilizes. CME’s open interest fell to $118 million on March 16, and is now back to $207 million.

Just this Wednesday, Bloomberg said in a newly released report that Bitcoin is preparing for the next massive bull run.

The report states,

“We believe that stock market volatility will temporarily weigh on Bitcoin, but the results are more reminiscent of gold after the 2008 financial crisis. This year is a key test for Bitcoin’s transition to a quasi-currency like gold, and Bitcoin has been hit but also stabilized its foundation amid unprecedented global monetary stimulus and increased adoption. The pricing reset of major quasi-currencies and this year’s stock market volatility support the appreciation of Bitcoin and gold prices.”

The report also stated that

“Stock market volatility has accelerated Bitcoin’s transition to gold. We believe this year will confirm Bitcoin’s transition from a risky speculative asset to gold in the crypto market. This will also be accelerated by falling Bitcoin volatility and rising stock market volatility from a volatility perspective. Bitcoin’s correlation with gold is already at its highest level in 10 years. Bitcoin’s correlation with gold is about twice that of stocks. Bitcoin’s maturation from speculative appreciation to a store of value mechanism similar to gold will continue.”

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