The upcoming Bitcoin (BTC) halving is on its way, pushing the top cryptocurrency through $10,000 on Friday morning. It was the first time it happened since February.
The top cryptocurrency traded around $9,900 later on, but it was still a 6.4% rise against the day before. This raised the crypto market’s entire market cap to $13 billion on a daily basis with BTC on the front lines.
Before the surge, the market’s value stood at $268.07 billion.
Some analysts say that it was also due to support coming from central bank monetary policies. Increased interest from institutional investors was also labeled as a cause, or as its new users showed.
In March, BTC suffered its lowest price since March 2019. It came around $3,867 at the time to skyrocket over 150% this month.
In the world of cryptocurrencies, the biggest factor that drove Bitcoin upward was the upcoming “halving,” which divides the amount of coins miners receive whenever they mine. The event keeps the coin from inflating over the years.
The reward per miner will be cut in half on May 12, which reduces the 12.5 BTC per block reward down to 6.25.
If the supply of bitcoin reduces, it leads to big price increases with it.
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Some indices in the stock market similarly saw a drop in March, but since then recovered amid better news against the coronavirus. The Dow Jones Industrial Average went back up by more than 28% since the low.
Now that more investors are looking at the appeal of cryptocurrencies, overall markets have been consistently bullish. Money printing across the globe gave investors the confidence to invest in more assets with better support for the economy.
The US Federal Reserve announced a series of unplanned fiscal measures to help the global economy battle the pandemic, and since then, the market hasn’t been the same. The European Central Bank also launched its own massive stimulus packages lately.
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