Bitcoin prices continued to rally today, surpassing $8,000 as continued momentum and positive news developments fueled the latest gains.
The cryptocurrency broke through the $8,000 level slightly before 5:30 p.m. EDT, according to CoinDesk data.
Continuing to climb, the digital currency had reached as much as $8,148.56 at the time of this writing, its highest since July 2018.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining bitcoin’s latest gains, analysts pointed to a handful of different factors, including sustained strength in the market.
The cryptocurrency’s impressive rally began in early April, when bitcoin surged more than 20% over 24 hours.
“Buyers outweighed sellers, and market makers felt the imbalance pressure so they took their markets higher,” said Jeff Dorman, chief investment officer of asset manager Arca.
This price appreciation “triggered algos, stop losses and liquidations, which only added fuel to the buying pressure,” he added.
“Momentum is driving momentum,” said Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare, stating that rising prices have been generating news coverage, triggering FOMO (fear of missing out) and attracting buyers to the space.
Naeem Aslam, chief market analyst for online brokerage ThinkMarkets, offered a similar perspective.
“The momentum has been building up for some time,” he stated.
More recently, bitcoin’s price rally “has picked up steam because of the positive industry news such as Franck Muller (a high end watch maker) [introducing] bitcoin watch, Facebook [taking] the ban off” and Microsoft launching a decentralized identity platform on top of bitcoin’s blockchain, he stated.
Dorman commented on the strong sentiment that has built up surrounding digital currencies.
“The bottled up demand is simply oozing out right now,” he noted.
“And because this asset class is still so small, it doesn’t take much to send it one direction very quickly,” added Dorman.
“It’s also important to remember why we’re all here in the first place — crypto offers alternatives for wealth management, savings, spending and investing.”
“Crypto offers uncorrelated, differentiated returns and reduces counterparty risk — this is bigger than just Bitcoin.”
Disclosure: I own some bitcoin, bitcoin cash and ether.