Price of Bitcoin Shoots Up Past $8700

Written by :

Aaron Goldstein

Published on :

29 April, 2020

Bitcoin was up over 12.4% in trading Wednesday.

Ahead of Bitcoin’s upcoming halving, all major trends surrounding the premier cryptocurrency seem to be positive, writes Shiraz Jagati of CoinTelegraph.

Bitcoin (BTC) seems to be experiencing a strong wave of pre-halving bullish momentum that has helped the flagship digital asset stay above the $7,500 mark for over two weeks, he adds.

On Monday, Bitcoin bulls all over the globe were given a reason to celebrate as the Crypto Fear & Greed Index — a metric used to ascertain the levels of psychological instability within the crypto market — exited its lowest possible reading of “extreme fear” after a total of seven long weeks. To be a bit more specific, the Fear & Greed Index is based on six core components: volatility, market momentum and volume, social activity, surveys, Bitcoin dominance and an analysis of Google Trends.

With that in mind, because the halving will most likely increase Bitcoin’s overall price volatility over the next couple of months, it will most likely impact the index in a negative way. However, Llisterri believes that the event will have a positive impact on Bitcoin’s market momentum, social buzz and overall reputation because it will help the currency gain a lot of media attention, as well as expose a whole new stratum of investors:

“The event could generate optimism amongst traders. Trading volume increased by 50%-150% in the months leading up to the previous halvings but the increased volume only persisted after the 2012 halving. In 2016, volume started dropping during July, the month of the halving and didn’t start to pick up until three months later. This time around, we’ve seen a solid increase in trading volume with March seeing the highest monthly volume since July 2019.”