BTCUSD broke the $10,000 resistance level and is comfortably trading above at the moment. Bitcoin gained 6.3% in just a few hours. Cryptocurrencies are soaring as investors look safe havens in the times of uncertainty caused by the coronavirus epidemic.
The rally was boosted additionally by Fed Chairman Jerome Powell, who testified on Tuesday before Congress that he considers cryptocurrencies a threat to the US dollar. Powell called Libra project a “wake-up call”, which made him realize that digital currency can become “widespread and systemically important”. He described the timeframe as “fairly quickly”.
At the moment BTCUSD is at five-month record trading around $10,300. The cryptocurrency appreciated 50% this year with the market cap exceeding $187 billion.
Ethereum seems unstoppable over the last hours. It surged almost 18% and is trading at $255 at the moment of writing this article, which is a new 2020 high.
In the next months, the cryptocurrency markets are being pressured to go up by the upcoming Bitcoin halvening in May. The event will cut in half the rewards for Bitcoin miners, which should drastically cut the supply of the currency.