Bitcoin Rises to $8400; What’s Behind the Rally?

While it is true that Bitcoin (BTC) had too many ups and downs in the last few months of 2019, the first two weeks of the new year seem pretty favorable for the world’s leading cryptocurrency. 

Bitcoin recorded a slight loss on the first day of 2020, leaving many critics thinking that the new decade will be a bad one for the coin, but the new rally has kept them shut.

As usual, most of the altcoins in the market, including Ether (ETH) are on the same trend with BTC, maintaining a positive momentum over the last few days. However, alts like XRP and Elrond (ERD) are facing negative market movements. Yesterday, the Elrond team, shared an update noting that they believe the continues downward trend in the value of the ERD token is likely caused by manipulators in the market.

One of our analysts predicted a few days ago that a major movement in Bitcoin price is expected and the coin would rally to $9,200 if Bitcoin breaks the $7800 resistance level. At the time of writing, the cryptocurrency is trading at $8,345.

Although Bitcoin enthusiasts are happy with the surge as they gather profits, many are curious and want to know the reason for Bitcoin’s upward trend since the start of the new year. Here are some of the possible reasons.

#1 US And Iran Tension

A lot of things could be behind Bitcoin’s rally, but at the moment, many believe that the ongoing United States and Iran tension has something to do with the price. Many traders could be pushing their investments to gold and crypto as safe haven. 

President Donald Trump ordered an airstrike at the Baghdad’s airport in Iran which led to the death of General Qasem Soleimani, the head of the Iranian Revolutionary Guards’ elite Quds Force. Iran retaliated by launching missiles to two US military bases in Iraq, but no casualties were reported. 

#2 Bitcoin 2020 Halving Event 

Another possible reason for the recent positive movements of the bitcoin price is the upcoming Bitcoin halving event that is expected to take place between May and June this year.

Many traders and investors are buying more Bitcoin because they believed that the halving will have a positive impact on Bitcoin, thus skyrocketing its value just like the Bitcoin halving of 2016.

#3 Bitcoin 2020 Predictions

With many crypto analysts predicting the bitcoin price to hit new ATH by the end of this year, some traders are stacking more bitcoins. No one wants to miss out on crypto profits.

In December 2019, Ross Ulbricht, an American convict and the founder of the now-defunct darknet marketplace, Silk Road, predicted that Bitcoin will hit $100,000 in 2020.

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