Bitcoin has surged back above $10,000 per bitcoin after a raft of positive news for the bitcoin price and cryptocurrency markets, somewhat putting to rest fears bitcoin bulls were about to wrest back control.
The bitcoin price is up 10% over the last three days, with traders and investors pointing to the U.S. Federal Reserve’s first rate cut in bitcoin’s ten-year history as one of the prime catalysts for the sudden recovery.
On Wednesday, the U.S. Federal Reserve cut interest rates for the first time in more than a decade and signaled its readiness to provide more support as growth slows in the world’s largest economy.
The bitcoin price climbed to highs of $10,500 on the Luxembourg-based Bitstamp exchange last night, while the wider bitcoin and cryptocurrency market has added around $10 billion to its overall value over the last few days.
“Given the connection that crypto influencers have been making between economic stimulus and crypto lately, we will probably see a much swifter reaction in bitcoin’s price than we usually do,” Mati Greenspan, senior market analyst at brokerage eToro, wrote in a note clients.
“We can see that bitcoin did have a nice run-up the entire morning ahead of the [Fed’s decision]. At the exact time of the cut, there was a notable step down, which was quite in line with what happened in the stock market.”
Just after the Fed revealed it was to reduce the cost of borrowing, bitcoin investors learned supplies of the digital token are almost exhausted, despite new coins still due to come into the market for the next 120 years.
Bitcoin now has 85% of its supply in circulation as of August 1, leaving just 3.15 million to be mined, according to data from monitoring resource Blockchain.
Meanwhile, the markets were further emboldened by news Jack Dorsey’s payments company Square revealed it made $125 million in bitcoin sales through its Cash App, nearly doubling a record first quarter.
“During the quarter, bitcoin revenue benefited from increased volume as a result of the increase in the price of bitcoin, and generated $2 million of gross profit,” the company wrote in its second quarter earnings report.
Elsewhere, the chief executive of Intercontinental Exchange (ICE), the parent company of the closely-watched bitcoin futures platform Bakkt, yesterday said the bitcoin and cryptocurrency platform will be launching soon, without fixing a firm date.
“Subject to final regulatory approvals, we plan to launch our physically settled bitcoin futures in the very near future,” ICE CEO Jeffrey Sprecher said during a quarterly earnings call.