What’s Fueling the Massive Pump?

  • Bitcoin briefly traded above $11,400 Monday, the highest in over a year.
  • The largest cryptocurrency has made remarkable gains over the past 48 hours.
  • The overall cryptocurrency market is now worth almost $330 billion.

Bitcoin’s price blew past $11,000 Monday for the first time since 2019, signaling the end of a multi-year downtrend and pointing to further gains over the horizon.

Bitcoin Making Waves

The bitcoin price peaked at $11,417.11 Monday evening, up more than $1,500 on the day. At the time of writing, the digital asset was sitting on a gain of 13% at $11,233, according to TradingView.

From a technical standpoint, bitcoin’s price far exceeds the 50-period and 200-period moving averages. The relative strength index on the hourly chart points to overbought conditions.

The bitcoin price is looking bullish above $10,500. | Chart: TradingView

A similar observation is made on the daily chart:

Bitcoin’s breakout intensified on Monday. | Chart: TradingView

At its current price point, bitcoin has a total market cap of nearly $205.2 billion. That accounts for 63.1% of the overall crypto market, which is presently worth almost $327 billion.

Like bitcoin, the total crypto market cap is trading at one-year highs. | Chart: CoinMarketCap

Is Bitcoin Becoming Digital Gold?

The rally caught the attention of mainstream media and casual traders who have grown accustomed to seeing bitcoin rejected in and around the $10,500 mark. After months of lateral moves, the largest cryptocurrency by market capitalization is finally breaking out.

Bitcoin is surging at a time when gold–the world’s most trusted haven asset– is trading at all-time highs against the U.S. dollar.

In both cases, investors appear to be hedging their bets against a shaky economic recovery–one that could dismantle the stock-market rally over the medium term.

While bitcoin still has a long way to go to prove it’s an established store of value like bullion, the digital…

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