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Bitcoin Reaches New 2020 Highs As Bulls Push for $8,600

January 14, 2020 at 13:21 by Matt Jackson

Bitcoin has reached new 2020 highs, breaking resistance at $8,500. Trading volume has increased, along with volatility, leading many traders to predict further gains with traders hoping for a daily close above $8,500. The next level of resistance is at $8,800.

The rest of the crypto market has seen gains, with Bitcoin forks like Bitcoin SV leading the way. Bitcoin SV has overtaken Litecoin, once again, in market capitalization, while Dash has also continued its recent run posting 25% gains in the last 24 hours.

With the Bitcoin halving just a couple of months away, many traders have been waiting for a prolonged run from cryptocurrency. Previous halvings, which occur every four years, have led to sustained price increases in the lead up to the event. The event is built into the blockchain and it means that miners receive half the reward for verifying blocks. Following the next halving event, miners will receive only 6.25 BTC for every block generated. This is one-eighth of the reward that was first offered to miners following Bitcoin’s inception. At the current block production rate, the next halving is expected to take place on May 18th 2020, but could occur as soon as May 14th. This process will repeat every four years, with the reward being halved until the final Bitcoin is mined, which is expected to happen in the year 2140.

Although the halving event has historically led to BTC price increases, the cryptocurrency market has changed considerably in the past four years. What’s more, this is only the third halving event to take place, so price increases are no sure thing. If prices do start to increase in April, though, investors are likely to buy up Bitcoin for fear of missing out on big gains, naturally pushing prices up, so the increases could become a self-fulfilling prophecy.

Bitcoin has performed well today, increasing more than 5% in the past 24 hours and breaking through the $8,500 resistance level, but Bitcoin forks have performed even better. Bitcoin SV, which saw 50% increases at the end of last week, has added another third to its price and has overtaken Litecoin in market capitalization, once again. This means that Bitcoin SV has added more than 80% to its price in the past week. Bitcoin Gold is up more than 20%, while Bitcoin Diamond has seen an 18% increase. Bitcoin Cash has seen modest gains in comparison but has still posted an 8% increase.

Dash, which is itself a fork of Bitcoin, is the other major cryptocurrency to have seen significant movements. It has added 25% to its price today, having already seen sizeable gains in recent days, and has catapulted into the top 20 coins by market cap. It is likely that the recent announcement of new restrictions being placed on 7 Venezuelan politicians yesterday, by the US, has led to some of these gains. Dash is used heavily in Venezuela as a store of value and is considered more reliable than the hyperinflated Bolivar.

As of 13:00 GMT, Bitcoin (BTC) prices are up 5.59% and the digital gold is now changing hands at $8,567.42 while Ethereum, which is often referred to as digital silver to Bitcoin’s digital gold, has increased 5.82% and now costs $151.93. Ripple (XRP) and Bitcoin Cash (BCH) have increased 4.12% and 9.28% to trade at $0.221 and $289.06 respectively. Bitcoin SV (BSV) has increased a massive 39.38% and has smashed through the $200 mark to trade at $226.80. Litecoin (LTC), has been pushed down to become the 6th largest coin excluding Tether, but has posted impressive 9.19% gains and now costs $54.30.

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

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