Bitcoin price fixed above $13,000 in anticipation of a repeat of last year’s price explosion
At yesterday’s session, the Bitcoin rate for the third time in a week exceeded the $13,000 mark, according to the CoinMarketCap website. Unlike the “punctures” and rollbacks of previous days, traders managed to gain a foothold above this level, which opens up the opportunity to once again rewrite the annual highs set in the outgoing week.
The return to $13,000 led to another record for the share of BTC’s dominance in the cryptocurrency market, reaching 61%.
The current wave of speculative demand for Bitcoin is related to the upcoming events in China. Starting from Monday, within 4 days, the Central Committee of the Communist Party of China will hold a regular plenary session dedicated to the goals of economic development for the next five and 15 years.
The October plenum of the Central Committee of the Communist Party of the PRC in 2019 was remembered by traders by the rise of Bitcoin by 40% in three days, after the speech by Secretary General Xi Jinping, who called for the development of blockchain technologies in the financial sector. Up to this point, China has taken an implacable stance against any option for using digital assets as cash.
The Bitcoin exchange rate can grow throughout the coming week if, during the plenary sessions or following the meeting of the CPC Central Committee, a detente policy is adopted in relation to digital currencies.
The meetings of the three Central Banks are another growth driver for BTC. In particular, the monetary policy of the European Central Bank and the Bank of Japan, announced on Thursday, is capable of strengthening the national currency rate, weakening the fiat dollar. In 2020, Bitcoin in 75% of cases reacted with an increase in the exchange rate to the fall of the fiat dollar.
The decisions of the central banks, as a rule, begin to be recouped by speculators a week before the day of meetings. Some of the current Bitcoin position may be related to the rate on the weakening of the US dollar. This may mean that until Thursday, the trader will be redeemed for any attempt at price correction, returning the cryptocurrency rate to the highs.
All important political events of the week will fall on Thursday. This is the last day of the Plenum of the CPC Central Committee, the date of the meetings of the European Central Bank and the Bank of Japan, as well as the publication of the preliminary US GDP.
Analysts expect the US economy to grow by an insane 32% in the third quarter, completely covering the previous 31.5% decline. Markets will not be able to pass by such an event, which could put negative pressure on the cryptocurrency market.
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