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Bitcoin Price Rises Back Above $9,000 As Some Point to Coronavirus As Catalyst

January 28, 2020 at 2:38 by Matt Jackson

Bitcoin prices broke back through the $9,000 barrier today, following a surge during late trading. The cryptocurrency had already posted gains for the day but a final surge at around 12:00 GMT added another $200 to the price. It has continued to push and is now trading at more than $9,100. Bitcoin’s current 2020 high is $9,180, which the digital gold achieved on January 19th. Although some coins saw a slight correction during Bitcoin’s final push, most have followed and posted further gains of their own.

Having started 2020 at $7,200, Bitcoin has posted more than 25% gains in less than a month. A number of reasons have been cited. A growing number of media outlets have pointed to Bitcoin being treated as a safe haven for investors. A safe haven investment is chosen in preference to currency during times of geopolitical uncertainty. The rising tensions between Iran and the USA coincided with increases earlier this year, and some are pointing to the spread of the deadly coronavirus in China as being the spark for this most recent increase.

Others are pointing to the fact that Bitcoin’s halving is only 100 or so days away. The halving is a four-yearly event that is built into Bitcoin’s code. Rewards for miners are halved, which is bad news for miners but means that the value of a Bitcoin will likely increase because the price of issuing a new Bitcoin would decrease, pushing up demand at a time when there will be more interest in the cryptocurrency.

According to Google Trends, there has already been an increase in interest in the Bitcoin halving. Norwegian firm Arcane Research reports that there have been twice as many searches for the term “Bitcoin halving” this month, although this is still some way from the peak search volume for the term, which occurred in 2016 during the last halving event.

This year’s halving event is set to occur on or around May 12th. There is very little historical data to compare the event to, as it has only occurred twice before, in 2012 and 2016. In both of these cases, the halving was followed by substantial increases before some correction, but investors should be cautious of expecting the same trend this time around. For now, analysts are looking at resistance at $9,500 as being the next obstacle. Bitcoin hasn’t seen this level since the end of October 2019, three months ago.

At 02:30 GMT, the Bitcoin (BTC) price is up 4.62% at $9,062.65 while Ethereum (ETH) has increased by 2.77% to reach $173.35. Ripple (XRP) has added 1.57% to its price and is changing hands at $0.234. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are up 2.47% and 8.85% and now cost $366.86 and $307.56 respectively.

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

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