- Bitcoin trades at $33,950 as of this article’s writing.
- The cryptocurrency traded above $34,000 just minutes ago and is attempting to consolidate around the current price points.
- This rally comes despite a strong drop earlier on Saturday that took the BTC price as low as $30,000 on top exchanges.
Bitcoin Shoots to $34,000
Bitcoin’s price just shot to $34,000 despite plunging as low as $30,000 earlier today. The leading cryptocurrency trades for $33,950 as of this article’s writing and is up over 15% in the past 24 hours.
Bitcoin’s latest leg higher comes after a strong drop earlier today, as mentioned earlier.
After peaking at $33,000 in the morning, BTC plunged from $33,000 to $30,000 in the span of two hours.
Bitcoin quickly rebounded as buyers defended the key $30,000 support level. The cryptocurrency has been increasing ever since that bounce and now trades at new all-time highs.
Altcoins are continuing to outperform BTC. Ethereum is up 8.5% in the past 24 hours while most other altcoins have gained only a handful of percent.
Chart of BTC's price action from TradingView.com
Not the Only One That Thinks So
This rally is predicated on a strong increase in both retail and institutional volumes for Bitcoin. Dan Morehead, CEO of Pantera Capital, recently stated that the amount of BTC that is being purchased by PayPal users is outstripping the new supply of the coin:
“When @PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins… In the last seven months, we’ve had two huge shifts — one in demand, one in supply — both upwards. On the demand side, we’ve had public companies like PayPal enter the market. That shifts the demand curve much higher. At the same time, the supply of newly issued BTC was cut in half in May — as part of the every-four years Halving of bitcoin issuance. Fewer BTC are available. We titled our previous investor letter, Bitcoin Shortage. The price acts like there’s a shortage.”
Bitcoin is expected to move higher as this demand outstrips supply.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Price Shoots to $34,000 Despite Drop to $30,000