Bitcoin’s Price Aims For $10,000 after it established another year-to-date high today reaching levels that it hasn’t reached in more than a year. Following the latest cryptocurrency news, the bitcoin-to-dollar exchange rate went past $9,800 for the first time since May 6, 2018.
As of today, the pair settled a fresh yearly high going strong to the $9,812 price level on Coinbase which is a 5.92 percent increase on a 24-hour adjusted timeframe. Bitcoin futures on CME surged as well and established a new high at $9,840 during the Asian session.
The price increase came 12 hours after the Federal Reserve confirmed the possibility for a new rate cut in July by carrying the yield on the benchmark US 10-year Treasury note which was down by 2 percent for the first time since 2016 in November. In the meantime, the US dollar index, remained under pressure in the mid-96.00 level so the index is now facing some pressure in the form of an imminently rising selling bias mainly because investors are making their insurance cuts. A clear example for this is Gold since the asset’s rate on Friday soared beyond the $1,400 per ounce price range form the first time since September 2013.
The correlation between the US dollar and the Gold price has led investors into gold because of the weakness in the US dollar. The resource analyst David Lennox of Fat Prophets stated that an added rate cut will weaken the dollar further and with the ‘’heightened geopolitical landscape’’ will lead the investors to these kinds of haven assets.
As noted in some of the best cryptocurrency news sites, the increasing political tensions between the Middle East and the United States will lower the bond yields and will further weaken the US Dollar but will be extremely bullish for gold. We could assume that the same factors would also make 2019 a very good year for Bitcoin. Bitcoin’s price aims for $10,000 after it delivered a more than 60 percent return on a year-to-date basis.
Mark W Yusko of Morgan Capital Creek pointed out the Bitcoin has the same qualities the gold has:
“Look at long term gold price chart, same types of parabolic moves and crashes,” said Yusko. “There was a time, not that long ago when no one owned much gold and didn’t think about it as an investment. Bitcoin has many of same qualities with a number of superior attributes.”
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