Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Bitcoin Passes $9,300 and Looks for Path to $10,000

May 28, 2020 at 13:32 by Matt Jackson

After bouncing between $8,750 and $9,000 since last Sunday, May 24, Bitcoin prices broke through $9,000 resistance on Wednesday, May 27, and passed $9,300 at lunchtime on Thursday, May 28. In doing so, Bitcoin not only returned to pre-halving prices but has broken out of a descending wedge. Prices may fall back to retest the recent $9,000 resistance level, but if this has flipped to support, traders will expect a rise to $9,500 before carving a path towards $10,000 psychological resistance. The world’s largest cryptocurrency, which recently underwent the third halving event in its history, is currently trading at $9,350. The rest of the cryptocurrency market has remained relatively stable, with modest gains from all of the top 10 coins except Ripple.

CEO of Digital Assets Data, Mike Alfred, has declared that a major crypto bull cycle is inevitable. Speaking to Cointelegraph, the head of the market analytics company pointed to government and Fed measures taken to curtail the negative effects of Coronavirus on the economy as being a catalyst for the move. Despite the US government pledging trillions of dollars in packages to help individuals and businesses across the country, unemployment levels have hit record highs, and businesses have been forced to close their doors, including some big-name enterprises. While these economic measures are essential to prevent serious economic collapse, many people are put off traditional investments for fear of a second wave and an extended period of recession. According to Alfred and other cryptocurrency proponents, this will lead to many buyers moving away from traditional commodities and towards the likes of Bitcoin.

It certainly seems as though existing investors are planning to hold their crypto for the long haul. The total number of Bitcoin being held on exchanges fell to an 18 month low at the beginning of the week. This means that Bitcoin holders are moving their digital currency to wallets and other forms of long-term storage, and implies that they are willing to wait for long-term gains, rather than sell in the near future. Yan Liberman, co-founder of Delphi Digital, has said that 60% of issued Bitcoin hasn’t moved in more than 12 months. He also said that this has been a precursor for a major bull run in the past.

Bitcoin fees have also fallen, which means that traders will pay less to move their holdings. Traders and analysts expected prices to rise following the halving because miners were being paid less for verifying transactions so the supply of new Bitcoins was slowed. By May 20, the average Bitcoin transaction fee stood at $6.65, the highest it had reached since February 2018, but had dropped more than 50% down to $3.07 on May 25. According to experts, when the Bitcoin network becomes congested, holders are more likely to convert their Bitcoin to another cryptocurrency before withdrawing it, which could lead to another so-called alt season, when smaller coins become less dependant on Bitcoin prices. Historically, this has seen some smaller coins multiply in value in a very short timeframe.

Finally, the debate over Bitcoin’s anonymous founder Satoshi has continued this week. 40 Bitcoins were moved from an account that had been idle since 2009 and during the first week of Bitcoin mining. The addresses used were among those that Craig Wright had claimed were his and that he said proved he was the anonymous founder of the world’s largest cryptocurrency. It is the first time since 2017 that somebody has moved coins this old. The transfers included a message calling Wright a fraud and claiming that further improvements to on-chain capacity were required.

At 14:20 GMT,  Bitcoin (BTC) prices were up 2.66% and the world’s first cryptocurrency was trading at $9,394.59. Ethereum (ETH) has added 1.6% to its price to trade at $210.93 while Ripple (XRP) fell 0.46% and now costs $0.198. Bitcoin Cash (BCH) and Bitcoin SV (BSV) were up 0.67% and 0.99% and trading at $235.20 and $188.71 respectively.

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

Leave a Reply