In the last hour, the price of Bitcoin (BTC) broke out of its side trading range to briefly break above the $ 9,500 level. The move comes after a slight increase in daily trading volume since Monday (July 20) and traders will now see if the digital asset top ranked in CoinMarketCap It can hold $ 9,500 and reach a daily peak above $ 9,775.
Perhaps the move is purely technical, as the price of Bitcoin has been compressing into a narrower range of higher and lower lows since early June, or possibly investor sentiment has been fueled by recent events in News.
Crypto market weekly price chart. Source: Coin360
Earlier today, Cointelegraph reported that the Office of the Comptroller of the Currency (OCC) has given permission for Federal banks authorized by the United States provide clients with cryptocurrency custody services.
This is a positive step forward, as it eliminates part of the procedure involved in acquiring and storing cryptocurrencies, which means that Cryptocurrency investors will eventually be able to keep their digital assets at the same bank where they hold their checking, savings and brokerage accounts.
The recent announcement by the European Union that would initiate another stimulus round of USD 857 billion euros and the expectation that the US Federal Reserve will do the same with a $ 1 to $ 2 trillion economic stimulus package could also be fueling investor belief that, while the Federal Reserve is printing, stocks will rise and Bitcoin will soon make another rally to $ 10,000.
Regarding the new stimulus rounds, Gemini Exchange co-founder and CEO Tyler Winklevoss suggested that:
“The Federal Reserve continues to set the stage for Bitcoin’s uptrend.”
Central bank impression continues to drive markets higher
In traditional markets, silver started the week with a strong pump that completed a good cup and handle pattern in the daily time frame, and at press time, assets increased 19.25% for the week.
Gold has also continued its upward trajectory pushing to a new peak at $ 1,874 today. Till the date, gold has gained 29% since the coronavirus-driven market correction in mid-March.
The S&P 500 and Dow also continue to push a little more each day, further proof that investors expect the Federal Reserve and central banks around the world to continue to implement stimuli.
As mentioned earlier, Expansive monetary policies are clearly boosting investor confidence in the markets, regardless of weaknesses that analysts may detect in the economy.
Remember, as the old saying goes: the stock market is not the economy.
Bitcoin daily price chart. Source: Coin360
Now that the Bitcoin price has managed to close the day above $ 9,500, Investors will watch to see if a higher peak above $ 9,775 can be achieved, after which an opportunity at the $ 9,900 – $ 10,000 level comes into play.
Altcoins also recorded moderate gains as the price of Bitcoin increased earlier this week.
Ether (ETH) recovered by almost 12%, XRP gained 2.88% and Litecoin (LTC) added 2.86%.
According CoinMarketCap, the global capitalization of the cryptocurrency market is now $ 284.7 billion and Bitcoin’s dominance rate is 61.7%.
