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Bitcoin Breaks $8,000 As Whole Crypto Market Sees Profit

April 29, 2020 at 11:54 by Matt Jackson

Bitcoin has bullishly broken $8,000 resistance, trading at $8,100 at the time of writing (12:15 GMT). Having spent most of Tuesday trading at the $7,700 mark, Bitcoin trading volume started to increase in the early hours of Wednesday, as prices first broke through $7,800 and then through $8,000. It reached a peak price of $8,174.85 on the Binance exchange. The cryptocurrency has now recovered its losses from the Coronavirus crash that occurred on March 12 and could have further gains ahead. The Bitcoin halving event takes place in 13 days, although many analysts are warning that macroeconomic factors like central bank monetary policies have a more important role to play in driving Bitcoin prices.

Bitcoin prices are up 4.5% in the past 24 hours, and its rise has caused the rest of the cryptocurrency market to turn green. Ethereum and Ripple, the second and third largest cryptocurrencies by market capitalization, have outperformed Bitcoin with 5.55% and 5.46% gains respectively.

Ripple has broken the $0.20 mark for the first time in nearly two weeks, breaking the psychological resistance with some conviction and now trading at $0.218. The last time the cryptocurrency reached this level, it quickly retreated and fell back below $0.18, but it has moved with greater conviction this time. Investors will be hoping it can flip resistance to support. Ripple is now in profit for the year but has some way to go to get back to its yearly high price of $0.34.

Ethereum has also broken resistance, in this case at $200. Following the Coronavirus crypto crash on March 12, digital silver has been making steady gains, rising from a low of $105 to trade at $207 this morning. Ethereum’s yearly high is $280.

The Bitcoin halving event will take place in 13 days, and while many investors have been eagerly awaiting the event which takes place every four years and is built into the Bitcoin code, analysts have warned that it is likely to be non-event and that global economic actions that are being taken to stem the tide of lockdown and business closures are likely to have more of an effect on cryptocurrency prices.

What is certain is that following the halving, miners will find it increasingly difficult to turn a profit from their efforts. Mining rewards are halved, which cuts supply of the asset. Many large miners have struggled in the past couple of months, as the fall in prices caused by Coronavirus has decimated margins. Things will get tougher for miners, which could have the knock-on effect of many of them leaving the market, further reducing new supply of the digital currency.

Figures from Glassnode show that an increasingly large number of people are buying and holding smaller amounts of Bitcoin, referred to as stacking sats. The number of network addresses holding at least 0.1BTC, currently worth approximately $800, has surpassed 3 million for the first time.

The trend started in February and was further boosted by the issuance of stimulus checks in the US. The checks were designed to help people through the financial difficulties of Coronavirus but major exchanges reported seeing a massive increase in the number of people investing exactly $1,200, which was the same as the value of the stimulus checks. There are calls for additional stimulus checks as the US government attempts to fight record unemployment rates and prevent citizens from falling into poverty, although this has not yet been confirmed.

At 12:15 GMT, Bitcoin (BTC) prices had increased by 4.47% to trade at $8,098.27 while Ethereum (ETH) had broken the $200 barrier, adding 5.55% to its price and trading at $207.73. Ripple (XRP) smashed the $0.20 resistance level, increasing prices by 5.46% to change hands at $0.218. Bitcoin Cash (BCH) and Bitcoin SV (BSV) also posted gains, rising by 3.18% and 3.29%. They cost $249.81 and $200.07 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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