Bitcoin (BTC) breaks US$11,000, but analysts aren’t surprised
Bitcoin crashed through both $10,000 and $11,000 in the space of 12 hours, but the rise was expected.
In the space of about 12 hours, Bitcoin broke through both $10,000 and $11,000, and at the time of writing it's trading just north of $10,800.
This brought Bitcoin to a fresh 13 month high, more than 250% up in the year to date, and despite the pullback and signs of resistance at $11,000, most experts agree there's more to come. This ascent is likely to be more resilient and deserved than the market froth of December 2017, and is likely buoyed by the rise of institutional interest in the blockchain space, experts say.
"The market has matured greatly since the last time bitcoin crossed $10,000," says eToro senior analyst Matti Greenspan. "This run is far more justified given the current level of adoption — the Bitcoin blockchain has remained consistently above 3.5 transactions per second since January. With Facebook making a grand entrance into crypto this week as well, it’s likely that the market is anticipating greater institutional participation in the coming weeks and months."
Others point out that the current move comes as little surprise to the people who have been saying "buy Bitcoin" for years now.
"This doesn't come as a surprise to people in crypto," says Props co-founder Yonatan Sela. "At this point, most people have heard of Bitcoin, and there are millions who 'get it' and believe it will soar to become the equivalent of gold in the digital age. There are many who bought bitcoin in 2017 and sold it at a loss only to see it bottoming at a higher price than last time around and coming back stronger. They're not selling again. Some of these people are institutions who have now established crypto-custody solutions and far more knowledge than before. News like Libra — which is not directly competitive to Bitcoin — will only help to fuel the fire."
Disclosure: The author holds BNB, BTC at the time of writing.