Jan 2020: Bitcoin Boosts Crypto Market

February 3, 2020, by Interstein N.
BTC has led the market with a January rally after year-end buyers and options trading boosted volumes.

Bitcoin Moving to Test the Key $10,000 Level Once More

Bitcoin has started the new year with a strong rally which has boosted the overall cryptocurrency market. After buyers emerged at the $7,000 figure in November and December, that support level has been enforced and has acted as a springboard for new buyers to emerge.

The move was boosted by the arrival of “options trading” in BTC, which officially went live in mid-January. Options are a sophisticated trading instrument that are listed on the big global exchanges and trading is available on all products such as oil, interest rates and currencies. The introduction of such a product is another boost for Bitcoin to emerge as a mature and professional trading asset amongst the big institutional traders and volumes in the BTC options have grown steadily week-to-week.

BTC has risen 30% in January and is now preparing to test the key $10,000 level. Round numbers such as this are psychological to traders as buyers and sellers can capitulate if big levels are breached.

Litecoin Is on Track for a Strong January Move

Litecoin was slower to find support than Bitcoin into year-end after a rollercoaster 2019 for the altcoin. However, LTC is now on course for a 50% rally in January after starting the year near $43.00 and now trading at $64.00.

LTC will continue to be boosted by a positive market and if BTC does push through the $10,000 level, it should bring further gains and potential new buyers into LTC and other digital currency.

Altcoins’, (a nickname for alternatives to BTC), such as Litecoin may provide more value in the long run if further public adoption comes to the market as buyers will often seek out cheaper investments than the more established BTC. A glimpse of that potential was seen last year as LTC rallied from $30.00 to around $150.00 for a 400% gain.

Summary

Bitcoin has given the cryptocurrency market a boost with a strong start to January and is now approaching the key $10,000 level. A move through there would add fuel to the market rally and will see Litecoin build on its own 50% gain for the month. The arrival of options trading is another boost for Bitcoin’s reputation as a maturing and stable asset for professional investors.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.

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