For the first time in 25 days, Bitcoin has finally broken the $10, 000 resistance mark and continues to hover around this price.
The new milestone comes amid growing tensions in mainland United States as protests rage for close to a week now following the death of George Floyd, a black man at the hands of police.
SEE ALSO: 7 Reasons Why Bitcoin is Stronger Than Ever in May 2020
According to analysts, here are some of the reasons that could be driving the current bull run:
- Bitcoin has been consolidating at $9, 500 making a strong case for a possible breakout
- The growing U.S. turmoil is fueling the narrative
- Growing inflation as the US and other governments worldwide prevent negative interest rates
- Long periods of stability and low bitcoin volatility levels (within the 2% range for over 100hrs) have historically correlated with large price movements
- Rising premiums in bitcoin futures pointing to a large demand spike for long positions
- Rising premiums in options contracts as traders are willing to pay more for long exposure
While the growing leveraged positions are largely coming from institutional investors like CME, analysts warn that these can positions can quickly get liquidated similar to what happened in mid-March, which caused bitcoin price to crash by 50 percent.
In the meantime though, there remains a compelling case for the bitcoin price to continue going up if all the above factors remain for the next couple of days.
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Read more:Bitcoin Crosses the $10, 000 Mark in Almost a Month Amid Protests Across the United
