Increasing demand for Bitcoin (BTC) has caused the king coin to rise higher. On Wednesday, May 6, BTC crossed the $9300 resistance level.
Since ending April 2020, the value of BTC has consistently continued to rise, closing from $7,117.21 on April 22 to crossing $9300 at exactly 11:40 UTC on May 6 and closing at $9,268.76. Bitcoin is currently trading at $9,796.90.
Analysts believe the increase in demand is in anticipation of the Bitcoin halving, which is scheduled to occur on May 12. Historically, the value of BTC skyrockets in the first few months after each halving, an event that takes place every four years.
At every halving, Bitcoin’s block rewards are cut in half. This is deliberate, to control inflation on the network.
BTC took a major hit on March 12, when it dropped to about $3,600, as it suffered the effects of the coronavirus pandemic. Many investors, both retail and institutional, took advantage of the crash and bought into the market.
In a recent tweet, Binance CEO, Changpeng Zhao, suggests that the steady increase in BTC demand as the halving draws closer is fuelled by the Fear of Missing Out (FOMO).
Gold bug Peter Schiff, however, believes that Bitcoin will soon collapse. In a tweet, Schiff said that there would be no one to buy Bitcoin after the halving.