Bitcoin managed to jump over the $10,000 threshold on June 21 with millennials, retail investors and infamous whales buying like never before. Last time the price stood at this level was for a short period in March 2018 before the start of the last crypto winter.
$10,000 price level represents a major psychological boundary that investors, public institutions and corporate players were closely following. And as the Bitcoin price actually soared, a few days later it even managed to cross the $11,000 level before getting pushed back in the $10,000 area.
At the moment the level of enthusiasm and “greed” in the market are at an all-time high level since most people were looking to see if Bitcoin would “confirm” that it can store value and even hedge buyers from political and economic troubles that affect the world these days.
Is there any difference between Bitcoin’s present Bull Run and the previous one from December 2017 when the $20,000 level was touched for a short time?
Well, yes. Back in 2017 the cryptomarket was actually pushed by altcoins and Initial Coin Offerings which forced users to purchase Ethereum so they can further on participate in ICOs to buy altcoins, obviously looking for high return investments. Did it work for most investors? No, but it did bring about a sea of liquidity into the market fueling the short-lived Bitcoin jump.
What’s happening now? At the moment, it seems the present market rally is led only by Bitcoin as we can notice its market dominance level increasing to 59%, a level that can only be found in the pre-ICO era. The reason is somehow easy to guess as institutional players like Fidelity and Bakkt are forcing the doors of the crypto-world looking to impose a regulated BTC future contracts market and receive professional financial traders at the table.
Since most retail investors know this, they are normally trying to buy as much Bitcoin as possible. However, there are other voices saying that the Bitcoin market is still very much dominated by the infamous whales, serious holders capable of buying and selling large amounts of Bitcoin.
As Bitcoin already passed through the $11,000 level for a few moments, everybody expects that resistance line to be soon breached.