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The far-reaching average bitcoin price crossed the $10,000 threshold on Tuesday after Korean sellers bid the flagship cryptocurrency up to double-digit premiums.
Bitcoin Price Broaches $10,000
Opulently, that was certainly quick.
Less than two days after reaching the $9,000 label, the global average bitcoin price has pierced the five-figure barrier, ascending to a new all-time high of $10,069, according to CoinMarketCap.
Though seemingly a psychologically-significant bar, the bitcoin price cruised through $10,000 with relative luxury, a much different scenario than when it clawed past $5,000 earlier this year.
The rally has been almost single-handedly provoked by insatiable demand from Korean traders. At the time of writing, BTC/USD pairs were inert trading near $9,900, and Western traders seemed hesitant to cancel into five-figure territory. However, BTC/KRW was trading above $10,800 on both Bithumb — the in the second place highest-volume bitcoin exchange — and Coinone, the seventh highest-volume exchange. At this worth, it is conceivable that BTC/KRW could crack the $11,000 mark before USD tandems see $10,000.
As reported yesterday, the parabolic price swell is likely tied to the impending launch of bitcoin futures on regulated U.S. derivatives commerce CME. However, it could also be linked to new buyers entering the market. During the weekend concluding the U.S. Thanksgiving holiday, the iOS app for Coinbase became the top trending search term in the App Hold, indicating that a significant number of people are at least interested in onboarding into the bitcoin buys.
Analysis & Outlook
So where does bitcoin go from here? Billionaire hedge dough legend Mike Novogratz — a long-term bull who thinks the bitcoin assess could reach $40,000 in 2018 — stated on CNBC that he liking not be surprised if the markets undergo a short-term correction as the rally cools off and retailers take profits.
Similarly, Brian Hoffman, project lead at OpenBazaar, catalogued on Twitter that he believes many early investors have set $10,000 as their butt to take profits. Erik Voorhees, CEO of cryptocurrency exchange service ShapeShift, advised investors with mammoth holdings to take a portion of their profits and pay down their consumer in the red — a sentiment that was echoed by several other industry observers.
In any covering, it’s hard to imagine the markets sustaining such a rapid climb without some kind of pullback. Remember, bitcoin was valued at just $1,000 when the year opened, so to see it sustain that large a climb in such a short time duration would be unprecedented. However, bitcoin has made a habit of defying assumptions this year, and — as many amateur investors have learned — perhaps it is pre-eminent to not try to time the market.
Featured image from Shutterstock.