For the first time since June, the price of bitcoin has breached the $10,000 ceiling recording $1,268 gains in the early hours of Tuesday from about $9,100 a week ago. The last time bitcoin crossed $10,000 was June 2.
The world’s biggest cryptocurrency by market value is trading at $10,851.98 as at press time, representing a 6.74 percent gain on a 24-hour basis on Coinmarketcap.
The surge, according to analysts, is a sign that investors’ confidence in the cryptocurrency’s long term prospects is starting to return plus the increased attention from institutional investors. Investors are also believed to be reaping huge profits from obscure digital currencies on decentralised finance (DeFi) platforms.
DeFi refers to the platforms that promote the use of decentralised networks and open-source software to create multiple types of financial services and products. The three most important functions of DeFi platforms include creating monetary banking services like issuance of stablecoins; providing peer-to-peer or pooled lending and borrowing platforms; enabling advanced financial instruments such as DEX, tokenisation platforms, derivatives, and predictions markets.
Anticipation over the Ethereum 2.0 upgrade expected to take place later in the year led to a surge in the ether token, the second-largest cryptocurrency and this is likely to have spilled over into the bitcoin market.
“We remain positive on the overall precise structure for Bitcoin and do expect it push through $10,000-$10,500 as part of its longer-term bullish technical profile,” Rob Sluymer, a technical strategist at Fundstrat Global Advisors told Bloomberg.