The world’s biggest cryptocurrency rallied back above $10,000 ahead of a technical event seen by some as having driven the price higher recently.

Bitcoin rose as much as 2.7 percent to a high of $10,070 on Friday in Asia trading, briefly taking it into five figures for the first time since February 24, and was holding just below that level at $9,974 at 10:25am in Hong Kong. That’s before the cryptocurrency’s upcoming halving when the rewards miners receive for processing transactions will be cut in half as soon as May 12, an intentional feature of Bitcoin designed to control inflation.

“Bitcoin trades sentiment-driven at its peaks and valleys, and the post-halving hangover is part of the normal price ebbs and flows on top of Bitcoin’s fundamental value,” said Jehan Chu, managing partner with blockchain investment and advisory firm Kenetic Capital.

The cryptocurrency has more than doubled in price since mid-March, joining a wider rally in global equities since getting rocked by coronavirus-related volatility that’s depressed economic growth, consumption activity and corporate earnings.

“Markets have been bullish since the March lows and this is across asset classes, including crypto,” said Vijay Ayyar, head of business development at crypto exchange Luno. “Money-printing by the Fed and other central banks globally have given a lot of confidence to investors that the economy will be supported no matter what.”

Paul Tudor Jones, Chief Executive of Tudor Investment Corp., said he bought Bitcoin as a hedge against inflation he sees being stoked by massive fiscal spending and bond-buying by central banks to combat the pandemic. Jones previously dabbled in Bitcoin in 2017, doubling his money before exiting the trade near its peak at almost $20,000.

“Bitcoin will likely see sub-$10,000 levels post-halving, but the surge in institutional interest from investors like Paul Tudor Jones is undeniable validation for Bitcoin,” Chu said.

SOURCE: https://theupdates.net/again-bitcoin-shoots-past-10000-but-could-slow-down-soon/