After a bearish outlook for multiple weeks, Bitcoin suddenly touched the $4,000 mark after a rally that started yesterday. The flagship cryptocurrency touched the $4,000 mark for the first time in 40-days.
On Tuesday, Bitcoin crossed a small milestone by hitting the $4,000 mark for the first time in more than a month. The largest cryptocurrency by market cap has surged by 10%, resulting in a rally amongst altcoins as well.
The cryptocurrency rally started a few days after the news came out that the largest bank of the United States, JP Morgan, had created and successfully tested a cryptocurrency that would have a value equivalent to one US dollar. Many investors see the news as an acknowledgement that digital assets have a future.
The digital currency, called “JPM Coin,” is based on blockchain technology and is, according to JP Morgan, intended to enable the “instantaneous transfer of payments between institutional accounts.” Many well-known names in the crypto space responded enthusiastically to the news, stating that the news is good for Bitcoin and other digital assets.
With Bitcoin surging, other top cryptocurrency assets are showing major gains as well, with the best single-day performances coming from EOS (12%) and Stellar Lumens (11%). Since Monday, the crypto market added $11 billion in total.
Mati Greenspan, senior market analyst at the online trading platform eToro, told The Independent:
“These gains are clearly creating a wave of optimistic sentiment throughout the crypto community, with market volume up by $8 billion in the last 24 hours. The market volume is now above $36 billion and we haven’t seen these levels since April 2018. But, until Bitcoin breaks above the much-needed psychological level of $5,000, the bear market is still very much in play.”