Bitcoin Price Surges Past $7,000, May Hit $10,000, Analyst Says

A slight switch to risk-on mode took place on Monday as U.S. stock indexes ticked at least 7% higher. The buoyant trading session caused the most significant rally stocks had in nearly two weeks of being battered by the coronavirus pandemic.

The uptick can be pinned on a couple of things: the second wave of stimulus that's hinted by President Trump and a glimmer of hope in containing the dreaded virus.

Recent reports showed that COVID-19 is nearing its peak in the U.S., and investors priced an immediate recovery yesterday. The second stimulus package, which Trump said is "under serious consideration," will provide relief for millions of Americans as last week's nonfarm payrolls show just a fraction of the full damage brought about by the coronavirus. The initial recovery package signed into law will start dispensing one-time checks of up to $1,200 by next week, according to the IRS.

The crypto market also caught on to the appetite for risk. The top 10 cryptocurrencies by market cap are all in the green, led by an almost 15% 24-hour change in Ethereum (ETH), followed by Tezos (XTZ) with 13%. The benchmark crypto, Bitcoin (BTC), surged 8.31% on Monday and obliterated the $7,000 level. BTC is now trading at $7,300, which is more than 80% since its drop to below $4,000.

"Risk-on mode was evidenced across both crypto and non-crypto markets, as market participants reacted positively to signs that coronavirus outbreaks have started to stabilize in some of the worst-affected countries," Denis Vinokourov, head of research at Bequant, told Bloomberg.

BTC's pre-crash level was at $8,000, and most analysts believe that any further rally would be subject to the price holding above that region. That key resistance level also coincides with the 100-day simple moving average, as pointed out by NewsBTC. With the halving coming up next month, it could be an opportunity for bulls to gain control and tilt the momentum to their favor in the coming weeks.

Craig Erlam, a senior analyst for OANDA, told Bloomberg that if it breaks those levels, it could clear the path for another run-up to $10,000.