Bitcoin rose 1.1% to $39,012 as of 9.57 a.m. in London after briefly surpassing $40,000 on Saturday. According to Bloomberg, Bitcoin’s rally is caused by growing concerns among investors on potential reflation and fresh U.S stimulus.
- After Monday’s rise, Bitcoin is now 7% below an all-time high set in early January.
- Bitcoin’s free float, which measures how many tokens are available to trade, has declined to 13% of supply, the lowest since 2014.
- Investors tout Bitcoin as an inflation hedge and store of value in a world of economic stimulus and rampant central-bank money printing.
- Analysts have raised concerns that President Joe Biden’s $1.9 trillion virus relief package risks overheating the economy.
- Bitcoin and other cryptocurrencies are also benefiting from free publicity by celebrities and influencers through tweets and memes.
- “If retail and institutional interest continue to grow over the next month, Bitcoin could target the $45,000 level”-Edward Moya, a senior analyst at Oanda Corp.
Bitcoin is currently gaining. BTCUSD is up 1.53%
