Bitcoin trades above $9,500. Several factors could spark a move toward $10,000
The Bitcoin price has risen by more than $400 since a midweek surge pushed the top cryptocurrency above $9,600.
The breakout represented the first time in nearly a month that Bitcoin’s price escaped the constriction of the Bollinger Bands.
Although bulls struggled to hold gains above $9,651 over the last 24 hours, a sustained move at current levels could finally set BTC on course for a retest of the psychologically important $10,000 mark.
Josh Rager of Blockroots shared a similar view, tweeting that a gradual push to $9,700 would create the conditions for a repeat run at $10,000.
Establishing solid support near this level will be critical to reaching that target.
Volatility and institutional interest could propel Bitcoin higher
Bitcoin’s climb to a high of $9,651 on Thursday signaled a return of volatility to the crypto market, with BTC/USD reaching its highest price since mid-June. The gains saw the leading cryptocurrency pierce the upper band of the previously compressed Bollinger Bands, whose volatility had fallen to its lowest level in more than two years.
After reaching a monthly high, volatility is likely to remain subdued in the short term. Bulls only need to prevent a breakdown into the $9,000–$9,400 zone to maintain an advantage.
Another key driver for a move toward $10,000 could be rising institutional participation, as evidenced by open interest figures for CME Bitcoin futures.
According to Skew, open interest in CME Bitcoin futures increased by more than 30% last week.
With open positions exceeding $4 billion, global interest sits at a multi-month high. That added liquidity and engagement could give Bitcoin the room it needs to extend its anticipated rally.
US banks have received regulatory clarity that allows them to allocate a portion of client assets to crypto custody. One digital asset manager argues that even a small allocation from banks could significantly boost Bitcoin’s price: a one-percent allocation, hedge or insurance position by large banks could potentially double Bitcoin’s price and push it toward $20,000.
Charles Edwards has suggested that even 1% of bank assets flowing into crypto would have a powerful impact on price.