Industry News Bitcoin overcomes 10,000 USD Barrier as a Crypto Buying Craze forms

Bitcoin overcomes 10,000 USD Barrier as a Crypto Buying Craze forms

July 28, 2020

The ongoing summer is quickly developing into a period where cryptocurrencies are leaving an ever growing mark. The domain recently saw what many have been hoping for ever since the rebound from the fall of Mid-march disastrous breakdown in all markets: the price of BTC token hitting 10,000 USD.

This happened over the previous weekend and now, bitcoin is trading just around the 11k line. BTC is not the only token that saw a strong upward trajectory. Instead, some analysts are suggesting that the push up came from the ethereum network and its potential to grip the imagination of not just direct investors, but also decentralized applications or apps.

For those analysts, the same is slowly unraveling into a new ICO craze that managed to push so much of the ethereum tokens into a wide range of other networks built on top of it in 2016 and 2017. Back then, the involvement of Chinese government put a stop to that process, but the present setup seems a lot more stable when it comes to dapps. As all of this takes place and natural bitcoin capturers the global mainstream media attention, it looks more and more like another crypto buying craze is on the horizon.

Trading Levels

The trading of the major cryptocurrency tokens, including ethereum, bitcoin and other top-ranked ones increased sharply at the start of the year. Otherwise, the crypto market was pretty quiet for most of 2019, besides a late spring, early summer rise in prices. 2020 quickly promised a different setup and this was evident plainly enough in February. This month saw trading jump to a new high and remain there for the coming months.

This is even more unusual because in March the full force of the COVID-19 coronavirus pandemic hit the western hemisphere. Yet, despite the strong impact on the entire world and even a cryptocurrency market crash in mid-March, the possibility for continued trading was something that appealed to many active in these markets. That is why the level of trading reminds on a high note even during the pandemic lockdown. The same fact is one of the first rock-solid pointers towards a possible bigger breakout of BTC than the current overcoming of the 10,000 USD barrier.

Astronomical Growth

The present level of trading growth in the bitcoin network is beyond amazing. In fact, if the present rates could be maintained, the daily volume would take about four years to reach and overcome the daily volume of all equities in the US. It would need a year longer to do the same for the daily volume of all US bonds. While these numbers seem incredible and some kind of statistic trickery, the truth is that other factors prop up such a setup. For example, the adoption rates have soared in the last handful of months.

In the US, estimated 15 percent of all adults hold some form of cryptocurrency. One out of two individuals who do hold it managed to get the same funds in 2020 for the first time. Those new investors got about 67 billion USD in crypto. That would put it to about 4,000 USD per new investor. Also, the 15 percent penetration puts the US in the top 10 countries according to the info from 2019. Since then, a lot has changed, but also the number shows just how prevalent crypto is becoming in the US.

Crypto Surge Demographics

The population that is currently getting into crypto is that of well-educated males with a high income. In 2020, eight out of 10 buyers were men of an average annual income of 130,000 USD. Four out of 10 have a Masters degree or higher, while seven out of ten have a Bachelor’s degree. They mainly belong to Millennials and Gen Xers in terms of their age. Interestingly, both Generation Z and Baby Boomers appear uninterested or drastically less interested in crypto.

This means that three years on after the first crypto craze, the demographic remained very similar to the people that fueled the first buying insanity. Now, the same type of individual appears to be gearing up to push crypto once again way up high and possibility to a point of new records being broken.

Synergy of Benefits

It would be easy to label all those interested in crypto as individuals who are interested in esports, stock market and similar dynamic environments where money is made on an incredibly fast basis. However, there are some big differences between now and the past periods of price rise and market explosion. Thanks to the instability of the entire global economic system, presently being shaken to its core by the pandemic, many US adults who got their hands on crypto now feel a lot more financially healthier than before.

This is a drastic difference when compared to the rest of the US, who are clearly deeply worried about their financial outlook in the months and even years to come. The moment when a lot of individuals in the US used their government stimulus package to buy bitcoin reflects this sentiment perfectly. Also, many other benefits of cryptocurrencies, like low transaction costs and so forth, are still in place, helping people to decide to start using them.

Start of FOMO

Besides other elements that make this slow rise of crypto prices into a potential bull run, there is also the fear of missing out or FOMO. This time around, because of the pressure and issues of the pandemic, there is no sense that people are rushing into crypto to become rich over night. Instead, ordinary people are getting it as a form of hedging against a very unpredictable future.

This might not allow the same level of senseless purchases as the one that markets the 2017 buying craze, especially when it comes to altcoins. That would make the FOMO factor less prevalent and less relevant for the next bull run. However, the nature of the crypto market is such that even the bitter experience of the last crypto rodeo might not mean much to a new generation of those who want to become the next bitcoin millionaire.

Source: Forbes