Bitcoin price rockets to $37,000 as global demand soars
The price of cryptocurrencies rallied overnight as investors remained optimistic about the rising demand from institutional investors. Bitcoin, the biggest digital currency in the world, rose to a record $37,000 while Ethereum and other altcoins also continued to do well. In recent months, many institutions like Mass Mutual, Square, and PayPal have invested millions of dollars in Bitcoin.
The price of gold and silver rallied after the Democrats took control of the Senate following their wins in Georgia. Jon Ossof defeated David Perdue while Raphael Warnock defeated Kelly Loeffler. Investors believe that these victories will lead to more stimulus, which will devalue the US dollar further. Indeed, Democrats have already committed to pass a $2,000 stimulus. They will also provide billions to states and local governments and trillions to infrastructure spending.
The Japanese yen dropped against the US dollar after relatively weak data from Japan. According to the Bureau of Statistics, the country’s overall wage incomes of employees declined by 2.2% in November. That was worse than the previous month’s decline of 0.7%. Similarly, overtime pay, which is an important measure of corporate business activity, dropped by 10.30%. Foreign investments in Japanese stocks declined by more than 85 billion yen. Elsewhere, in Australia, imports increased by 10% in November while exports rose by 2%. As a result, the trade balance rose to more than a $5 billion.
The BTC/USD pair soared to more than 37,470 due to the rising demand for Bitcoin. On the daily chart, the price is along the upper line of the Bollinger Bands while its middle line is substantially lower. Also, the price is above the short and longer-term moving averages while the accumulation and distribution indicator and the momentum have continued to soar. Therefore, the pair will likely continue rising as bulls aim for the next resistance at 40,000.
The ETH/USD pair has also been on a strong upward trend. It is trading at 1,218, which is the highest it has been in more than 3 years. On the daily chart, it is also along the upper line of the Bollinger Bands and Parabolic SAR. Oscillators are also rising, which is a sign that bulls are still in control. Therefore, the pair may continue rising as bulls target the next resistance at 1250.
The EUR/USD pair rose to 1.2325 after the Georgia election and after the weak ADP jobs data released yesterday. On the four-hour chart, the price is above the 25-day and 15-day exponential moving averages. It is also slightly higher than the ascending trendline that’s shown in red. Also, the two lines of the Stochastic oscillator are approaching the overbought level. Therefore, the pair may continue rising today.