Bitcoin (BTC) is getting closer to the $10,000 range, possibly just a few days away. After the extended bear market that roughly continued from January 2018 to March 2019, BTC faced a series of challenges but seems to be in much better shape now. The trading remains risky and unregulated, but prices have moved away from their stagnation.
BTC seems set to test the $10,000 range for these chief reasons:
Tether (USDT) Record Supply: USDT-based trading remains instrumental for ensuring BTC sees enough liquidity. In the past weeks, new printings increased the Omni layer supply of USDT to above 3.54 billion, with another 900 million on the Ethereum (ETH) network. This additional liquidity allows exchanges to boost trading, and for traders to react quickly.
Self-Fulfilling Prophecy: With BTC a few hundred dollars to the $10,000 tier, the bidding may lead in that direction. Even if a retreat from that range happens, touching $10,000 would be quite encouraging to the market. BTC has been capable of adding hundreds of dollars within an hour, and the proximity of the $10,000 range may be encouraging. Adding bot-trading activity to the mix may move the prices even faster.
Peak Mining: Bitcoin’s network marks record hashing power, and mining remains as competitive and important as ever. With miners voting confidence for the asset, prices may receive a boost from the news of a record hashrate. Interest in mining and network usage at rather robust levels mean BTC gains legitimacy, also due to the higher network security.
Altcoin Season Delayed: Currently, the bigger gains may be found with BTC growth, while altcoins remain fickle and offer only sporadic gains, highly unpredictable. Only a handful of altcoins are receiving investments from BTC, while smaller coins and tokens trade on niche markets powered by stablecoins.
Exchanges Limiting US Traders: With less US-based trading for altcoins and tokens, speculation is redirected to the leading coin. At the same time, Asian markets are reawakening, also boosting the volumes for BTC speculation. US-based trading also reveals growing institutional interest, and the indication that regulators are willing to allow some form of BTC investment provided limits to volatility and higher transparency. With Bakkt futures coming up in July for testing, BTC continues with a baseline of optimism.