Bitcoin Rockets Past $11,400…Briefly

July 28, 2020

Momentous changes are taking place in the crypto space. You’ll be forgiven if you have just the slightest of smug grins on your face today as a Bitcoin holder. Bitcoin hit a year-high price of $11,400 ($15,218CAD) on Monday.

It’s been the most insane year in recent memory and Bitcoin has been riding the waves along with the rest of us. BTC plummeted from $10,500 to $3,860 in March 2020’s Black Thursday, but has since rallied to an $11,400 high. This high happened on Monday, when the coin shot from trading at $9,940 to $11,400 in a 24-hour bull run. As July 27 drew to a close, the price had increased 10.96% over the course of the day – music to the ears of hodlers everywhere.

Bitcoins Price Hits 2020 High

Deribit reported that on Monday more than 47,500 contracts traded for Bitcoin options within 24 hours. The value of these contracts was $539 million. The exchange’s previous daily record was set on (unsurprisingly) the day of the Bitcoin halving, May 10. Skew reported July 27 was the second-highest volume day in the history of Bitcoin.

Many in the crypto space are predicting a stratospheric upshot in price going forward. Long-time investor and Galaxy Digital Founder, Michael Novogratz, predicts gold and Bitcoin will continue to climb in price due to a worldwide “liquidity pump.”

“Bitcoin still has a lot of retail interest in it,” he said. “A lot of that retail interest shifted to the story stocks, to the tech stocks because they were just more fun … yesterday you saw a lot of money shift back over to gold and bitcoin.”

However, despite the dearth of bull gifs being shared on Twitter, others in the space are not so sure that this run will last. Gavin Smith, CEO of Bitcoin and crypto group Paxora, believes, “The balance of 2020 is still high volatility with a year end of around $7,000 [per bitcoin] with a drive higher to new highs in 2021.” The options market is signally a slim 7% probability of Bitcoin breaking its all-time high of $20,000 by the end of the year.

A Short-Lived Bull Run?

Jimmy Song of Programming Bitcoin echoed this in Finder’s Cryptocurrency Predictions report for 2020. “There won’t be as much money going into Bitcoin while people try to survive…Until the prices rise in the grocery store, Bitcoin won’t really start taking off. I suspect that’ll take another nine months or so.”

Bitcoin’s rally since March aligning with that of gold while traditional assets (including the USD) have declined may have had a positive effect on the mainstream perception of Bitcoin as a viable hedge against inflation. Hitting $10,000 was previously considered a psychological resistance barrier to some, which was easier to build upon once met.  Many who are new to the crypto space need to see something happen before they believe it’s possible, but by then it’s too late to profit.

The Bitcoin price stands at $10,976/$14,651CAD at the time of writing.

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