An Impressive Feat: Bitcoin Holds Strong at $10,000 Despite 3 Big Hits
2020 has been really good for the majority of the asset classes. But bitcoin hasn’t been able to achieve a more significant price level, still struggling to top 2019’s $13,900 price point.
The year started on a bullish note, only to experience one of its worst crashes in March. BTC recovered beautifully from that drop and started ranging between $9k and $10k during May and July.
In mid of August, we pumped, reaching a one-year high at the north of $12,500 only to get back to $10,000 in September.
And now, just a day in October, and things turned gloomy. Bitcoin first dropped $450 on the news of crypto derivatives platform BitMEX facing criminal charges. But the digital asset held strong.
This wasn't even the first big event that hit BTC. A few days back, KuCoin suffered the third largest theft ever suffered by a cryptocurrency exchange. But the digital asset held strong to its most important psychological level.
BTC hit its longest-running streak of keeping above $10,000.
The only Q is what should we buy? BTC looks incredibly strong and I can't believe it's still >$10k after Bitmex and Trump.
— Qiao Wang (@QwQiao) October 2, 2020
Bitcoin had started recovering from yesterday’s losses, going nearly to $10,700 when early Friday President Donald Trump announced that he and First lady Melania Trump had tested positive for Covid-19, soon after his closest aide, Hope Hicks fell ill with the coronavirus.
This came with barely one month left until the US presidential election, against Democrat Joe Biden that has focused heavily on Trump's handling of the coronavirus. The development obviously makes it harder for the President to try to shift attention from the virus.
Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!
— Donald J. Trump (@realDonaldTrump) October 2, 2020
The market responded negatively to the news, with the US stock futures falling.
“Trump having COVID is most definitely bearish, as his odds of winning collapse. Expect downside continuation,” noted trader and economist Alex Kruger. “I think the higher odds are a) bullish Biden, b) bearish stocks short term, c) bearish dollar, and can easily be wrong in all three,” he added.
Bitcoin is currently trading around $10,550, while gold has jumped to $1,910 after sliding to $1,890. After strengthening above 94, the US dollar index fell victim to the situation and is back around 93.75.
Stock futures plummet on Friday morning after President Donald Trump said he tested positive for the coronavirus.
Futures tied to the Dow Jones Industrial Average plummeted 428+ points. S&P 500 futures and Nasdaq 100 futures were also in negative territory. pic.twitter.com/iNtFo9XkKR
— Mr. Whale (@CryptoWhale) October 2, 2020
Amidst weak price action, although an impressive feat in itself, the positive development for the flagship cryptocurrency is its active addresses currently being at an all-time high.
“This means that the 200-day rolling average of bitcoin addresses that move bitcoin to-and-from each other is the highest it’s been over the last decade,” states TokenDaily.
With no sharp rally to support this momentum and despite minimal mainstream adoption, these numbers indicate healthy, substantive growth in bitcoin.
More Reading: A ‘Big’ Positive Step Towards the Bitcoin ETF Approval