Amid chaos in world financial markets due to Covid 19, bitcoin has run up as the best asset class and has gained its highest levels since prior to covid 19 outbreak.
The momentum has also been lifted due to bitcoin halvening that becomes due over the next two weeks.
The similar upward push is seen across other digital currencies which have also surged in tandem with Bitcoin which gains more than 8.5% to $8406. Other cryptos which gained include Litecoin and Bitcoin Cash.
Notably, a total of 21 million bitcoins can be mined and of these 18 millions have already been mined. The number of new bitcoin that make way to the market will be falling on a year on year basis, resulting in lesser supply and hence higher prices. As per Coin telegraph, the halving event will "cut its supply further to a rate of around 1.7 per cent per annum".
In Indian rupee, the crytocurrency is valued at Rs. 7,06,768 per bitcoin.
On February 10, bitcoin hit levels above $10,000 after previous run up of more than $20000 in 2018 end.
"The Bitcoin halving in under two weeks may explain some of the bullish activity b .. Craig Erlam, senior market analyst at Oanda, wrote in a note. "But you have to think that an event that has been in the diary for so long will already be priced in. This could see some of these moves faded as we hit halving day."
Further as per the indicator the asset seems to be in the overbought category and as the event may already be priced up, further run-up may be difficult in the short term.