Bitcoin price ran up this Sunday, breaking the resistance of $10.000 and reaching the highs last seen weeks before the mid-March market crash.
The world’s leading digital asset climbed to over $1.250 on July 26 during the sudden weekend bull run. This is the first time since the middle of February when Bitcoin rally brought the asset at over $1.4000. The benchmark crypto crossed the $10.000 barrier once again on June 20, however, it quickly retracted again after the daily spike.
The significant price increase came as the apex of the continuously growing week. Since Friday 24, when Bitcoin closed the week at around $9.500, the asset price soared up by 8% reaching the highs of $10.278, according to CoinMarketCap. Bitcoins price has been steadily growing since July 20, when it traded at around $9.150.
The bull run, however, brought back the rise of the Bitcoin fees, which have more than doubled during the week. The price reached its $3.841 peak on July 23, which marks nearly 150% growth in four days, compared with the $1.527 fees of Sunday, July 19.
According to the data of BitInfoCharts, the last two weeks were marking the growth of the Bitcoin transaction fees, which have increased by nearly 300% since July 12, when the price sat at $0.809. However, the current growth approached the levels last seen just a week after the third Bitcoin halving on May 11. At the time of publishing though the cost of the transaction has lowered to the levels of $2.521.
The rise of transaction fees might be highly connected with the increased Bitcoin network congestion, caused by the higher activity level. This means that the Bitcoin network became more popular among its users for the last few weeks.
The current boom might be caused by various reasons, including the positive correlation with the precious metals, especially gold and the all-time high bull run on the decentralized finance (DeFi) markets.
The gold price currently is on fire as it made its historic move this Sunday and reached the all-time high of over $1.920 per ounce, according to GoldPrice. The price of the asset is on an uptrend for the last few months, since the global pandemic and monetary policy stimulus measures around the world forced investors and traders to turn to the safer and inflation-resistant assets. The current geopolitical tension between the United States and China is also playing a role in the gold price rally. Meanwhile, Bitcoin, the so-called digital gold, is in a close correlation with the traditional one, which means that the same trend may affect both assets.
Furthermore, the current growth in Bitcoin’s price might be related to the exploding decentralized finance (DeFi) industry. The boom in liquidity mining, lending, decentralized exchanges (DEX) led the total value locked in DeFi up to $3.1 billion at the end of July. Accordingly, the total value of Wrapped Bitcoins (WBTC), the ERC20 tokens that represent Bitcoin locked on DeFi more than doubled within the last few weeks.