Bitcoin Has Risen to Its Highest Point Since February, Amidst Continuing Civil Unrest in the U.S.
Bitcoin has spent nearly a week above 9,000 USD and by Friday we saw it in the 9,400 to 9,600 USD range, this brought the investors flocking in, pushing the price even higher in trading on Monday. We saw Bitcoin sitting at 10,118.57 USD at 10 p.m. at the end of day trading (EDT), this was up by 6% from the previous day and we saw a high of 10,268.58 USD at 7:40 p.m.
The reasons behind any surge in bitcoin’s price are consistently open to speculation. According to Forbes, the rise is following consistent growth in bitcoin futures. Bitcoin futures offered by CME Group saw 3,943 trades on the 1st of June 2020, with the current price sitting at 10,215 USD as of 9:45 p.m. EDT, up to 565 USD.
Some experts are saying that the current unrest in the U.S. is linked to bitcoin’s rise, not the violence itself but more the economic damage the looting and burning of buildings will result in. One expert said on Twitter that budgets are going to blow out as a result of the situation.
A previous discussion about the monetary and fiscal stimulus being used during the Coronavirus outbreak would also drive bitcoin even higher. The methodology here is that as governments print more money and attain more debt, the price of traditional currencies drops, making bitcoin seem more of a safe-haven investment.
This methodology is supported by David Leibowizt, a global macro portfolio manager at CIO Lebo Capital Management, who recently said that bitcoin could be a big opportunity for investors in what he describes as the “debt-fueled roaring twenties.” He takes this further, saying that with global interest rates for the government-guaranteed debt at nearly zero, the fixed income asset class gone, and with bonds offering very small to nil returns, Leibowizt believes that investors will turn to assets such as bitcoin as part of their investment portfolio.
Exactly how high Bitcoin could go is, as usual, anyone’s guess. The fact that Bitcoin has broken through the 10,000 USD mark is a positive sign and some experts are suggesting that the cryptocurrency could hit 11,000 USD or even 12,000 USD in a very short period of time.
Bitcoin’s price increase was also reflected in some of the other major cryptocurrencies, with Ethereum up by 5% to 247.28 USD, Ripple XRP was up by 3%, and Bitcoin Cash was up by 7%.
James Stewart
Fundamental Analyst for Global Markets
James has over 20 years of experience trading FX, cryptocurrencies and investments products for a range of investment banks and brokers
He spent the last 10 years analyzing and writing about foreign exchange, crypto-currencies and the global financial markets
He has also spoken at a range of conferences around the globe on various financial topics.
