Bitcoin’s price sets the best weekly close in 2 1/2 years: 5 things to know
Bitcoin (BTC) celebrates another week with a boost to $12,000 and its biggest weekly close since reaching $20,000, will the price come back?
Cointelegraph takes a look at five things that will affect BTC’s price performance over the next five days.
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A record two-and-a-half year weekly close
The fact that Bitcoin reached USD 12,000 again early Monday was more than a relief to traders; in doing so, the BTC/USD set its biggest weekly close since January 2018.
This means that no week of price action has ended at such high levels since then, including the peak of last year’s bull market.
Having pleased analysts for several months in the short term, Bitcoin Champion thus continued with longer terms, a crucial move to consolidate the upward trajectory.
Now, investors looking for confirmation that the bull market will continue may have received it, but in the face of daily and hourly events, a multi-year weekly high is significant.
The BTC/USD rose 2.4% on the day, with weekly gains of 7% and monthly returns of over 30%.
On the price front, the $12,000 represents the highest Bitcoin has reached since June 2019, three months after the Q2 bull market took the crypt currency from $4,000 to $13,800, a level that this cycle has yet to reach.
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Victory driven by Fiat’s instability
Bitcoin’s price hike comes one week after U.S. President Donald Trump added to existing geopolitical tensions by banning China’s social networking platform TikTok.
The resulting escalation of ties with Beijing adds to the existing weakness in the U.S. dollar and continuing concerns about the Coronavirus, a perfect storm for a flight to safe haven assets.
At the same time, Trump signed a series of executive orders on the Coronavirus stimulus, something that now has a curious impact on markets that are already subject to strong Federal Reserve intervention.
This time, however, the measures will have a lesser direct effect on the average American. A delay in the payroll tax, for example, is not enough in the eyes of critics.
„This phony tax cut would also come as a great shock to workers who thought they were getting a tax cut when it was only a delay,“ Bloomberg quoted Democratic Senator Ron Wyden as saying in a statement.
„These workers would be hit with much larger payments in the future.“
It is this delay in the inevitable financial cost to personal wealth that is at the heart of the probitcoin argument, high preference economic behavior ultimately costs much more in the long run than the immediate benefit to the target audience.