Bitcoin $10k and Ethereum $300 – Start of a new bull run?
Both Bitcoin and Ethereum broke through important price levels yesterday. Bitcoin, the most famous crypto in the world, rose smoothly over $10,000 while Ethereum, as predicted by us last week, went over $300. Analysts are already wondering if this is the beginning of a new bull run.
Let’s start with the Bitcoin price that broke through the $10,000 level. Currently, Bitcoin is trading for $10 160.10
(€ 8 687,35) with a 4.06% increase in the last 24 hours. After the price broke the 10K level yesterday, BTC dipped back to below 10K. Early this morning, the price rose again to around $10,200.
This is not the first time this year that the currency has done this, but it is remarkable that two months of consolidation preceded between $9,000 and $10,000. According to analysts, this is a sign of strength and shows that classic investors now perceive a price below $9,000 as cheap.
Bitcoin jumps above $10,000 for the first time since June https://t.co/wtIkma5mDN— CNBC (@CNBC) July 27, 2020
Furthermore, this price increase to $10,000 this week will provide global media coverage for crypto, another positive signal.
The Ethereum price also reached a new high of $322 on Sunday, surpassing its previous highest price of the year, achieved in February 2020. Currently, Ethereum is traded for $321.24 (€ 274,68) with an increase of 2.74% in the last 24 hours.
There are important underlying forces that cause the currency to rise.
For example, analysts expect a lot from Ethereum 2.0, for which a test net was recently launched. At the beginning of August, i.e. next week, Ethereum could switch to a new platform, which would increase the speed of transactions.
There is also the increase in the DeFi market (Decentralized Finance). In May of this year, there was still less than $ 1 billion in DeFi platforms. Since yesterday, July 26, 2020, this amount has grown to $ 3.75 billion which is locked via various DeFi protocols. Ethereum is still seen as the inventor of DeFi and therefore has a lot to gain from the popularity of DeFi.
Are these all signs of a new bullrun? We think it’s a bit too early to assume, but the fact that the two biggest cryptos break through price levels together with an altseason in which smaller cryptos like Chainlink, VeChain and Cardano go higher and higher is of course a good signal.