Bitcoin (BTC) was able to rally to over $10,050 in the last few hours as the market gets ready for the halving event that will take place in just four days. Investors are very excited about what can happen with the most popular virtual currency and how it could surpass its previous all-time high if a new bull run starts.
Bitcoin Surpasses $10,000
Bitcoin, the largest cryptocurrency in the world surpassed $10,000 for the first time since February this year. It is worth mentioning that the market was affected by the Coronavirus crisis and the lockdowns that many countries all over the world established.
The Bitcoin halving is one of the most important things that could be pushing Bitcoin’s prices upwards. We can see this trend repeat itself in the last halving events that took place in the last 12 years. Every single time Bitcoin halved, a few years later, it surpassed its previous all-time high.
It is also worth taking into account that analysts and investors are also following very closely how Bitcoin and cryptocurrencies behave. Paul Tudor Jones, a recognized macro and billionaire investor, said that Bitcoin reminds him of gold in the 1970s. He suggested that the virtual currency could be the best hedge against inflation during the current Coronavirus crisis.
Jones has also mentioned that he would use the Chicago Mercantile Exchange (CME) Bitcoin’s futures after the June BTCM20 reached $10,1555. Moreover, Bitcoin has already outperformed gold during this year and just a few stocks provided better gains than Bitcoin itself.
Jones said about Bitcoin:
“Bitcoin reminds me of gold when I first got in the business in 1976. Gold had just been productized as a futures instrument (like Bitcoin recently) and had enjoyed a heck of a bull market, almost tripling in price.”
Now, Bitcoin is being traded close to $9,840, falling around 2.28% from its recent high of $10.070. The main question is what will happen with Bitcoin after in the next hours and also after the upcoming halving.
We could take what happened to Litecoin (LTC) last year. Before its halving event, Litecoin experienced a massive bull run from $25 to $140. However, after the bull trend and just a few days before its halving, LTC entered a new bear market that pushed it to below $40.