In brief
- Bitcoin has set a new record of 63 days above $10,000.
- The previous record of 62 days was set between December 2017 and January 2018.
- During this run, Bitcoin is also showing signs of stability relative to previous price fluctuations.
We do the research, you get the alpha!
Bitcoin has cemented its longest period of consecutive days with a value above $10,000, after it ended yesterday at $10,721. Its current price is $10,760, as it looks to continue this run.
Bitcoin’s last stretch above the $10,000 mark was for 62 days at the end of 2017. Two years later, it tried to match this but only managed 28 days. But now, Bitcoin has gone on a run for 63 days—a record that Jason Deane, Bitcoin analyst at Quantum Economics, attributes to the “MicroStrategy effect.”
“Price had just passed the $10,000 mark when their first acquisition announcement came on August 11, and the impact of this bold, ground-breaking move by Michael Saylor was to drive substantial confidence and credibility into the asset,” Deane told Decrypt.
Today’s record-setting run
The cryptocurrency has now opened and closed the day at a price above $10,000 for a milestone 63 days—between July 28, 2020 and today. While the cryptocurrency may have briefly dipped under $10,000 in this period, it never started or ended a day below $10,000.
During this time, Bitcoin’s price occasionally broke above the $12,000 mark. Per CoinMarketCap, the highest price of Bitcoin between July 28, 2020 and September 28, 2020 was $12,359, which came on August 17, 2020. This was the day when Barstool Sports President David Portnoy infamously suggested “in crypto, you can pump and dump all day long.”
But now and again, it did drop below the $10,000 mark—albeit briefly. The lowest price during this period was $9,916 on September 7, 2020. This represents a 20% decrease in Bitcoin’s price during the run.
Bitcoin’s fluctuations have been more stable this time around, too. On one of Bitcoin’s previous runs, its price was so volatile, it fluctuated by 53%. Whereas on this run, it only moved 20%, showing a period of relative stability.
The previous run, for 62 days, came two years ago between December 1, 2017 and January 31, 2018. During this run, Bitcoin actually saw its highest ever price, which was $20,089 according to CoinMarketCap.
The Microstrategy effect
Even though the asset is still down from its 2017 high of $20,000, Bitcoin is proving it can maintain steady investment appeal.
One of the reasons for this is the cryptocurrency’s ability to attract institutional investors. On Deane’s point, MicroStrategy CEO Michael Saylor also described Bitcoin as “digital gold.” He added that the asset “is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
In addition, Bitcoin may be the beneficiary of steps that are mainstreaming the crypto industry more generally. Last week, US federal regulators allowed national banks to back stablecoins. In addition, crypto exchange Bitfinex yesterday announced perpetual contracts that track equity market indices in Europe.
And that’s not even to mention the sheer amount of Bitcoin that Grayscale is pulling in.