On Sunday, bitcoin, the original crypto asset, had briefly breached a key technical handle of $10,000 for the first time since early June after having been traded in a tight range for several weeks what crypto analysts said could pave the way towards further upswings in a near-term outlook.
Apart from that, a sharply weakening US Dollar alongside the recent leg of Sino-US tension appeared to have bolstered crypto analysts’ bet on crypto assets, as bitcoin surged as much as 7.90 per cent last week, while the digital currency had gained 9 per cent this month thus far.
In point of fact, Sunday’s breach of $10,000 level for bitcoin has been widely contemplated as a sign to gaining further traction, as following around 38 per cent loss in valuation on March 12 after the WHO had declared the ongoing health emergency as a global-scale pandemic outbreak, the digital asset’s outlook darkened further after it had went through a so-called having on May 11 that had cut rewards for the crypto miners to 6.25 new coins from an earlier 12.5.
Notably, the halving effect had impacted the supply of digital asset since it takes more time for the crypto miners to reach their break-even point, which eventually had weighed on to the valuation of the digital asset as well.
US Dollar weakness prompts Bitcoin rally
Citing statistics, during preparation of the report, on early Asian trading hours on Monday, the bitcoin was trading 0.94 per cent higher to $9,974.20, Ethereum was up by 1.46 per cent to $314.4 and Ripple added 0.74 per cent to $0.215, while Litecoin soared 0.94 per cent to $48.2.
More interestingly, since the United States had shut down the Chinese consulate in Houston over allegations of espionage, eventually widening the rift further between the trade war-struck nations and leading to a widespread weakness for the appetite of American Dollar, bitcoin gained as much as 8.49 per cent, while earlier on Sunday the crypto asset had briefly hit a one and a half month high of $10,200.