Bitcoin (BTC) Touches $10,000 Briefly, Settles at $9,500
Triggered by the blockchain-friendly comments of Chinese president Xi Jinping, BTC rallied on Friday, striking above $10,000.
Bitcoin (BTC) had a dynamic weekend, where it broke out of the depressed bounds. BTC reached a peak appreciation of 42% within a day, which is the fourth largest daily percentage gain in history. At the current prices, such a move is significant and recalls the coin’s behavior during the bull market in 2017, when $1000 days were regular.
What is curious is that the recent rally arrived just days after a deep flash-crash to as low as $7,400.
BTC also had a secondary rally late on Sunday, when the price trekked from the $9,100 range, to above $9,600 again. Now, BTC steadied around $9,503.12, on highly active volumes above $36 billion’s equivalent in the past 24 hours. BTC has increased its volatility lately, and while the fear and greed index is at 52 points, a “neutral” position, there are signs of FOMO buying.
The other factor that boosted BTC was increased Tether (USDT) activity. A series of mintings and tranches happened around the time BTC pumped on Sunday, including an issue of 45 million USDT that went from treasury to Bitfinex, and shortly after back into the treasury.
During the recent BTC rally, some altcoins also sank to $0.99, suggesting the prices were not entirely realistic in fiat terms. While USDT was highly active, with more than $40 billion in volumes, other altcoins saw outflows and token burns, meaning someone was also taking money off the table.
BTC now enters a period of heightened expectations for new highs, possibly to $20,000 as the halving of the reward nears. The January 2020 deadline, when China is supposed to vote in blockchain-friendly laws, may also generate additional hype. This changes the mood for BTC within days, from bearish expectations for a drop to $6,000, to hopes for a rally by the end of the month. The new week started off with stabilized prices, but with expectations of an even bigger end-of-the-month rally.
Predictions of $16,000 prices by the end of October were mentioned on social media. With three more days to go, it may be a far stretch to achieve those levels, but BTC is on track to end the month with a more respectable market price.