Bitcoin (BTC) is getting closer to $10,000 once again in the last few hours after falling to almost $9,100 a few days ago. Bitcoin investors remain bullish about the future of the cryptocurrency and how it could also become a hedge against inflation. In addition to it, a BNY Mellon Asset Manager, Shamik Dhar, stated that there are investors that are buying hedging assets after the recent recovery in traditional financial markets.
Bitcoin Moves Closer To $10,000
The entire cryptocurrency market is waiting for Bitcoin to start moving higher once again. Specifically, they want the largest cryptocurrency in the market to reach higher prices and eventually surpass its previous all-time high of $20,000. Of course, before this happens, Bitcoin would have to surpass its local high of $13,750.
In the last few hours, Bitcoin started to be traded close to $9,750, which shows investors are still interested in acquiring the virtual currency below $10,000. In the past, the goal was to acquire Bitcoin below $6,000, later below $8,000 and now just below $10,000.
Furthermore, Shamik Dhar stated that investors are not currently buying the stock market rally, and this is something that could eventually increase the demand for hedging assets in the world.
On the matter, he stated:
“Buy insurance for portfolios in the form of sovereign bonds, gold, and other hedges, given the balance of risks at the moment.”
Back in March 2020, Bitcoin and traditional financial markets behaved in tandem when investors left the space trying to search for secure investment tools amid a growing COVID-19 pandemic. Despite that, Bitcoin and financial markets recovered from the crash and were able to continue growing.
The recovery phase had a “V” shape and it showed that investors were also waiting on the sidelines in order to get the most out of it once the recovery would have started.
At the time of writing this article, Bitcoin is being traded around $9,750 and the digital currency has a market capitalization of $179.36 billion. If Bitcoin is able to surpass $10,000 once again, it would have to show it is able to continue growing to higher prices rather than being stagnant close to that level.
If indeed Bitcoin moves higher once it surpasses $10,000 we could see the digital asset reaching new local highs in the coming months.