In the last hour, the price of Bitcoin (BTC) moved out of its sideways trading range to briefly break the $9,500 level. The move comes after a slight increase in daily trading volume since Monday (July 20) and traders will now see if the top-ranked digital asset in CoinMarketCap can sustain USD 9,500 and reach a daily peak above USD 9,775.
Perhaps the move is purely technical, as the Bitcoin price has been compressing into a narrower range of higher and lower minima since early June, or possibly investor sentiment has been driven by recent news events.
U.S. Regulators Approve Federal Banks‘ Custody of Cryptos
Cointelegraph reported today that the Office of the Comptroller of the Currency (OCC) has given permission for U.S.-licensed federal banks to provide customers with cryptomoney custody services.
This is a positive step forward, as it eliminates part of the procedure involved in acquiring and storing cryptomoney, meaning that cryptomoney investors will eventually be able to keep their digital assets at the same bank where they keep their checking, savings and brokerage accounts.
The recent announcement by the European Union that they would start another EUR 857 billion stimulus round and the expectation that the US Federal Reserve will do the same with a USD 1 to USD 2 trillion economic stimulus package may also be boosting investors‘ belief that, as long as the Federal Reserve is printing, stocks will rise and Bitcoin will soon make another bounce back to USD 10,000.
BRD CEO recalls leading Bitcoin’s helpline during the early days of crypto-currency
With regard to the new stimulus rounds, Gemini Exchange co-founder and CEO Tyler Winklevoss suggested that:
„The Federal Reserve continues to set the stage for Bitcoin’s upward trend.“
Central bank printing continues to drive markets up
In traditional markets, silver started the week with a strong pumping that completed a good Cryptosoft cup and handle pattern in the daily time frame, and at the close of this edition, assets increased by 19.25% in the week.
Gold has also continued its upward trajectory, pushing to a new peak at USD 1,874 today. To date, gold has gained 29% since the coronavirus-driven market correction in mid-March.
The S&P 500 and Dow also continue to push a little further each day, further evidence that investors expect the Federal Reserve and central banks around the world to continue to implement stimulus.
As mentioned above, expansive monetary policies are clearly boosting investor confidence in the markets, regardless of the weaknesses that analysts may detect in the economy.
Remember, as the old saying goes: the stock market is not the economy.