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Bitcoin Holding Above $5,000, Ready for a Move Higher?

April 17, 2019 at 17:26 by Matt Jackson

Bitcoin prices closed on the 5th April above $5,000 and hasn’t closed below this point since. It has risen to around $5,250 and fallen back down to the $5,000 level, backed by increased volume, and some analysts now expect the cryptocurrency to make a move higher. However, most are warning that it will have a difficult time breaking through the $5,250 barrier and retaining that position. If the digital currency can close out the month at this height, it will be the fourth consecutive profitable April.

Meanwhile, cryptocurrency proponent and former digital security entrepreneur John McAfee has said that it is mathematically impossible for Bitcoin to be priced below $1 million by the end of 2020. A collaboration between VISA and Coinbase could see cryptocurrencies finally enter the mainstream with a card that will allow for purchases to be made in some of the biggest currencies. One company that has certainly profited from Bitcoin’s prices in the past is Binance, who registered a 66% profit increase in the first quarter of 2019.

John McAfee, who founded and established the cyber security software company McAfee, has long said that Bitcoin will reach the $1 million price mark by 2020. Despite that timeframe coming in less than two years, and Bitcoin languishing at just over $5,000, he is sticking to his claim. In a Tweet, the outspoken entrepreneur said that it is basic maths that BTC prices will increase in value 200 times in just over 18 months. He also warned that Bitcoin is not a stock and that traders cannot apply stock paradigms and expect results.

One move that could help see massive increases in price is a partnership between VISA and Coinbase. The two companies are to partner in the creation of a credit card that will allow users to make purchases using Bitcoin, as well as Ethereum, Litecoin, and Ripple. One of the primary stumbling blocks for cryptocurrency is that it remains difficult to spend in physical stores and even online. With the backing of VISA, which is accepted in venues around the world, this problem could easily be overcome. If this happens, it is likely that prices will increase as new investors clamour to grab the currencies.

Not everybody has struggled during the recent sideways action. Major cryptocurrency exchange Binance reported a $78 million profit during Q1 2019. This is an increase in profits of 66% compared to the previous quarter. The figures have been calculated using the company’s burn data, which states that 830,000 BNB were burned, representing 20% of the company’s net profits in the first quarter.

Bitcoin (BTC) is currently trading at $5,216.74, while Ethereum (ETH) is $165.85 and Litecoin (LTC) is $79.10, at 18:00 GMT.

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

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