Bitcoin News

Here's Why $5,000 Is So Important For Bitcoin

Here's Why $5,000 Is So Important For Bitcoin

Here's Why $5,000 Is So Important For Bitcoin

In the absence of any major fundamental news, the big news out of the Bitcoin space today is that price has finally broken the $5,000 mark. Having hovered in and around $4,800 for a few days, the bulls finally picked up the push required to respect the strong price action and carry Bitcoin over the mark.

The question now is how did it happen, whether things go from here?

First up, it's with noting that this price point is important on a couple different levels.

The obvious importance is that it is a key psychological resistance level that, for a long time, seemed unattainable. These sorts of round number price points serve to reinforce sentiment and there's no question that the major news media outlets globally will pick up on the fact that Bitcoin is now at $5000 today and, in turn, will likely attract a large degree of speculative volume inflow towards the Bitcoin market. This, in turn, should serve to push the price up even further. We saw it at $2,000, we saw it at $3,000, we saw it at $4,000 and we will almost certainly see it $5000.

The second reason why it is so important is that it has demonstrated the fundamental resilience of Bitcoin as both an asset (in terms of a store of value) and an industry (and specifically, a decentralized one).

This time last month, China was in the process of banning ICOs and shutting down exchanges. Jamie Dimon of J.P. Morgan was calling Bitcoin a fraud and the Russian government was suggesting it wanted to stymie Bitcoin as an asset that's only tradable over regulated exchanges and by accredited investors. Price collapsed but, importantly, and as the recent levels show, has now completely recovered from this setback.

In other words, if a large country like China (and one that accounts for the huge amount of volume in the space) can't stop Bitcoin's, nobody or nothing can.

Next up, $6,000.

Author : Jack Dean

Jack has worked in the cryptocurrency industry for 5 years now as a reporter. His experience is predominately in banking, while he also has a keen interest in the forex world. His daily output is read by thousands of readers globally.

bitcoin Bitcoin price Important For Bitcoin