This weekend, BitcoinBitcoinshot up above $10,000 for the first time in seven weeks, breaking a psychological threshold and sending the cryptocurrency’s price back to pre-coronavirus levels.
Unlike on previous occasions, though, the biggest cryptocurrencycryptocurrency by market cap may not be leading the market, but following in others’ wake. That’s the verdict of some experts who spoke to Decrypt, who also claimed that Bitcoin’s surge wasn’t unexpected.
“A lot of analysts have predicted a breakout for some time based on the technicals and, with constantly improving fundamentals and the effects of fiat devaluation, this was not unexpected,” Jason Deane, an analyst at Quantum Economics, told Decrypt.
“There's a lot of talk of BTC moving back into exchanges to trade for altcoinsaltcoins, especially linked to DeFi, which would explain Ethereum (and others') movements,” Deane added. That wouldn’t explain Bitcoin’s move, he noted, “except under the 'rising tide raises all ships' scenario and if a certain percentage are buying BTC to gain interest returns.”
Bitcoin, the largest cryptocurrency by market capitalization, today surpassed $10,000. It hit highs of $10,023 at 10.10am UTC.
The price of Bitcoin fell after its peak; by 11am, it had fallen to $9,927. Then one last hurrah to $9,985 before settling at its current price, $9,954.
That Bitcoin has brushed past $10,000, if only for a few minutes, is proof that its dry spell is ending. Bitcoin’s price has barely changed for almost two months and only now is its fate beginning to change.
The last...
Simon Peters, cryptoasset analyst at social investment platform eToro, noted that Bitcoin is flowing into exchanges for the first time in several months, echoing findings from a recent Glassnode report. “In my view, this is merely investors looking to take advantage of altcoin prices, which are now gaining momentum compared with Bitcoin,” Peters said.
What's driving Bitcoin's price surge?
Although for the most part, traders can only speculate why Bitcoin’s price has increased, the ever-increasing popularity of decentralized finance (DeFiDeFi) platforms based on Ethereum could be one reason behind the broader crypto market’s growth.
Ethereum itself hit its highest price since June 2019 on Sunday, while Bitcoin is losing dominance to altcoins. Currently, Bitcoin’s dominance over the cryptocurrency market is only 61.6%—the lowest it’s been since last July, while a recent Glassnode report indicated that more Bitcoin entered exchanges this month than left it, for the first time since January.
Bitcoin's price has surged above $10,000. (Source: TradingView)
That, as market analysts suggested to Decrypt, could indicate that Bitcoin is flowing into exchanges to be traded for the altcoins that power DeFi platforms.
Another possible reason for the recent surge could be the continuous increase in stablecoins’ market capitalization, said Peters. “Tether (USDT) crossed the $10 billion mark this month and USD Coin (USDC), Circle’s stablecoin, is also at its highest level, having reached a market cap of over $1 billion,” Peters noted. “Perhaps some of this liquidity has made its way into Bitcoin.”
Bitcoin isn’t missing out on the recent crypto price jumps, but it’s also joining Ethereum in a less impressive way—higher fees.
Bitcoin fees are on the rise again, approaching levels last seen during the recovery from the March 2020 crypto crash, which was linked to the corresponding stock market decline.
On Thursday, they hit an average of $3.841, an increase of 151% since last Sunday. They’ve since fallen slightly; yesterday, the average Bitcoin transaction cost $2.9, according to BitInfoCha...
“I would imagine the 'Depth of Market' on exchange order books has been pretty low, given that over the last five months, more Bitcoin has been taken off exchanges than put on,” he added, pointing out that a big enough market order could have shifted the price significantly over the weekend.
"Bitcoin’s network metrics are also looking pretty healthy, indicating that confidence is high and price is low,” Peters added. “This could be the catalyst for bulls who were 'sitting on their hands' to now go out and buy.”
Institutions and dollar devaluation
Deane noted that CME Bitcoin futures open interest—as well as global—has risen sharply recently, which could be suggesting positive institutional activity. The overall devaluation of the US dollar, possibly catalyzed by countries around the world that are massively expanding their debts to fight the coronavirus, could be another factor.
Bitcoin, the largest cryptocurrency by market capitalization, today surpassed $10,000. It hit highs of $10,023 at 10.10am UTC.
The price of Bitcoin fell after its peak; by 11am, it had fallen to $9,927. Then one last hurrah to $9,985 before settling at its current price, $9,954.
That Bitcoin has brushed past $10,000, if only for a few minutes, is proof that its dry spell is ending. Bitcoin’s price has barely changed for almost two months and only now is its fate beginning to change.
The last...
“USD devaluation, increasing awareness of Bitcoin and ease of use and access [...] makes Bitcoin a likely candidate for a safe haven/store of value going forward in my view,” he said, while stressing that, “We never know for sure, of course!”
Deane also pointed out that this will be the first post-Bitcoin halving surge in demand, with 50% less Bitcoin being mined on a daily basis.
What will happen to Bitcoin’s price now?
The price surge drew Bitcoin evangelists and skeptics to Twitter like moths to a flame. Euro Pacific Capital CEO and noted Bitcoin skeptic Peter Schiff pointed out that Bitcoin hasn’t held a price above $10,000 in the last couple of years.
Two of the last three times #Bitcoin rose above $10,000 in Oct. of 2019 and in Feb. of 2020 it soon fell by 38% and 63% respectively. The last time Bitcoin rose above $10,000 was in May, and it only fell by 15%. It's above $10,000 again today. How big will the next drop be?
Bitcoin is coming to the drive-thru.
American fast food chain Steak ‘n Shake said Thursday it will begin accepting the world’s largest crypto at all of its U.S. locations starting May 16, giving its more than 100 million customers the option to pay for milkshakes and burgers in BTC.
“The movement is just beginning,” the company posted on X.
Unlike high-margin retailers, fast food chains run on thin margins and high volume, making Steak ‘n Shake’s Bitcoin rollout a real-world stress test for the...
On Thursday, Bitcoin miner MARA Holdings reported a staggering $533 million net loss for the first quarter this year, despite amassing Bitcoin at a record pace and steadily growing its year-over-year revenue.
The company's Q1 earnings reported a 30% jump in revenue to $214 million, with its Bitcoin holdings ballooning to 47,531 BTC, a 174% increase from just 17,320 BTC a year ago.
Still, the company's results missed Wall Street’s expectations. Its net income loss expanded to $533 million (at $1....
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The crypto exchange booked $2 billion in total revenue on Thursday, below Wall Street analysts' estimates of $2.12 billion. Net income came in at $66 million, marking a 94% decrease from the fourth quarter of 2024.
The company’s earnings per share shrank to $0.26 from $4.84 the previous year for the same thre...