Bitcoin Cracks $10K for the First Time Since the Covid-19 Market Selloff

The Bitcoin pre-halving bull run continues as the number one cryptocurrency pulled off another stunning rally to reach $10,000 on Thursday, May 7. This price rise represents the first time BTC has managed to hit five figures since the brutal market selloff back in March that saw its price drop to below $3,800.  With the Bitcoin halving a mere four days away, there’s every chance the market could see a last gasp rally or at the very least, establish a solid support level.

May 7 was a fruitful Thursday for Bitcoin as the crypto asset surged past the $10K mark, going as high as $10,070 before sliding back down to the $9,900 region. After dropping to a new year to date low $3,600 on March 12, otherwise known as ‘Black Thursday,’ the price of Bitcoin has since grown by over 177%. At the time of writing, BTC is facing stiff resistance and changing hands at the $9,850 to $9,950 price level. It needs just a few hundred dollars more to completely regain all its 2020 gains that were initially wiped out due to the COVID-19 pandemic financial fallout.

An Impressive Performance to Say the Least

Since the start of 2020, there is no stock, precious metal, or commodity that has been able to post a sizable recovery and subsequent gain such as Bitcoin’s year to date performance. As of today, the top-dog crypto asset boasts a market capitalization of over $180 billion with around $15 billion worth of global trade volume over the last 24 hours.

This recent run-up means that those who bought bitcoin at the start of the year would now be seeing an almost 40% gain on their investment. In the meantime, the rest of the financial markets are still struggling to get out of the red; as of the time of writing, the S&P 500 stock index is still down by 10.82%, while the Dow Jones index is down by 16.34% year-to-date. 

Additionally, with Bitcoin’s per annum inflation rate set to drop from 3.6% to 1.8% by May 12 and its per-block supply reduced to 6.25 BTC, the cryptocurrency may be set to establish a new support level above $10K before the event. More so, with central banks around the world flooding the monetary system with various stimulus packages in the trillions.

What About Bitcoin’s Fundamentals?

Escalating economic woes, shuttered industries, and falling fiats could be driving investors into Bitcoin and other crypto assets at the moment. The latest of which is renowned hedge fund manager, Paul Tudor Jones who has jumped on the Bitcoin bandwagon, following fears that major inflation is looming given the rate at which the U.S. Federal Reserve has been printing trillions of dollars. 

“The best profit-maximizing strategy is to own the fastest horse…If I am forced to forecast, my bet is it will be Bitcoin.” Jones said in a recent publication. 

Market sentiment remains wildly divisive with certain quarters expecting BTC to skyrocket after the halving. Global Macro Investor and former Goldman Sachs hedge fund manager, Raoul Pal believes the chances of Bitcoin hitting $40,000 and targeting $1 million are higher than ever, following its ‘perfect wedge’ on the chart.

However, there are also calls for caution among analysts claiming that BTC could slide down after the halving in a possible short-term correction. 

With around four days to the halving, the entire crypto community waits with bated breath on what will happen to Bitcoin’s price. Where do you think the price will go after May 12?