Bitcoin enthusiasts were jubilating Monday as the world's most popular digital currency finally breached past the $10,000 level.
The so-called psychological threshold has been within striking distance for days, but trading did not have enough volume and momentum to carry bitcoin above the $9,800 mark as it looked like the crypto was headed for a fall ahead of May's halving.
However, a surprise rush of investors in the early hours Sunday gave the virtual currency enough strength to break across the $10,000 border and lock in for target in what has been a bullish trajectory in recent days.
Despite hitting the "golden cross" just days ago, normal volatility emerged and elicited doubt among bitcoin advocates where the significance of reaching double figures is not lost.
The new surge comes around two years after the price of the crypto burst to nearly $20,000 a bitcoin back in December 2017, advancing from under $1,000 at the start of the year as the cryptocurrency fever engulfed the world - but new information indicates this bitcoin bull run is quite distinct.
Exchange deposits for the digital currency have retreated sharply in the past two quarters, suggesting the latest rally is not being sparked by retail investors, crypto analytics firm Glassnode Data showed.
But for many, $10,000 is just the start before a far bigger level of the leading cryptocurrency hits. Anthony Pompliano, co-founder and crypto investor at Morgan Creek, predicts that the price of Bitcoin could reach $100,000 by end of 2021 due to limited supply and increased demand.
The scene was set some days ago for Monday's noteworthy climb. Bitcoin moved up 5 percent on Friday as it aimed to reach an apparent resistance level of $9,600 with $10,000 in sight.
The much-anticipated halving set on May is obviously a driving force behind this new surge that has seen Bitcoin spring in under seven weeks from $6,400 to past $10,000.
The crypto's block reward halving is expected to see miners acquire only 6.25 per block instead of 12.5, generating increased scarcity and hence higher demand for digital asset holdings.
Bitcoin has been exhibiting high price volatility since 2010, spurring a debate about the underlying reasons that cause economic agents to demand it.
In the short term, the majority of the public saw Bitcoin as an opportunity to speculation. The bitcoin price also soared earlier last year at the outset of a China-US trade war.
Many people have turned their stocks to Bitcoin; fiat currency and properties when finding a safe haven. The market could be guided in the long term by the near-future expectations of Bitcoin as a medium of exchange.
