On Thursday, Bitcoin (BTC) price surged from $12,920 to $13,600 in four hours after the European Central Bank (ECB) said it might seek a new stimulus package in December. Also, optimistic job data from the US was another reason for the 5 percent rally in the BTC price, said CoinTelegraph.
Over the last month, the BTC prices went up by almost 30 percent on the back of Paypal's recent move to allow its customers buy and sell certain cryptocurrencies, and rising institutional interest.
Last week, BTC prices continued to rally despite the negative macro factors-- a steep decline in the US stock market and the rising number of COVID-19 cases in the country as well as in Europe.
According to CoinTelegraph, there are certain events that led to the bounce back in BTC prices. ECB's comment on the stimulus package triggered the demand as it would massively increase the appetite for the risk-on assets in Europe. This would further push the US government to act on their much-awaited stimulus deal.
ECB also said that it would ensure all possibilities in the sustainability of the economy. This just doesn't benefit stocks but also gold and bitcoins.
Meanwhile, the technical analysis pointed out $13,000 is a strong support area. "BTC defending the area indicates buyer demand is overwhelming selling pressure, as seen in the futures market," said CoinTelegraph.
It further added that currently the demand for bitcoin from the spot market is offsetting the selling pressure and defending the asset against the downside.
First Published: IST