sludgefeed.com
Bitcoin (BTC) has been on an absolute tear to start the new year.
Since we flipped the calendar to 2020, Bitcoin has gone from just under $7,200 to a recent high of $8,800, a roughly 20% increase in two weeks after surging more than 11% on Tuesday.
While a recent JPMorgan report suggests Bitcoin is significantly overpriced relative to its intrinsic value (the cost required to mine 1 BTC) the leading cryptocurrency has continued higher, benefitting from a confluence of bullish events and strengthening short-term momentum.
The first positive macro catalyst came last week as tensions between the United States and Iran ratcheted up, sparking a rally in gold and BTC. While the geopolitical tussle ultimately resulted in no major actions from either country, the uncertainty surrounding the event was enough to kickstart some investor interest in safe-haven assets.
Additional momentum appears to have come from the introduction of CME Bitcoin options on Monday, bringing CME Group into direct competition with Bakkt. The new contracts have already outdone Bakkt in terms of trading volume.
While some analysts predicted the introduction of CME options would have a bearish impact on Bitcoin’s price, this hasn’t been the case so far.
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