In the last two days, the price of Bitcoin has been hotter than Kim K. BTC has unexpectedly increased by over 20% for no apparent reason. The unexpected increase in price had an effect on other cryptocurrencies such as Litecoin and Ethereum which have also experienced a similar increase.
The Sudden Increase In Bitcoin Price
The crypto industry has been stagnant for quite some time prior to the sudden increase. In the last three months, the price of Bitcoin has been hovering around $4,000 which was very low from the peak price of $19,000 that the crypto recorded at the beginning of 2018. On the second day of the spike, Bitcoin was higher by 5.25% closing at $5,164 which is the highest the coin has gotten since November last year.
Analysts have labeled the jump as a mystery with some attributing the growth with the unpredictability and volatility of the cryptocurrency market. According to George McDonough, the CEO of KR1, the spike can be associated to a number of reasons but he associated short positions at Bitmex exchange worthy $415 million to have been the reason for the market movement.
TF Global Markets chief market analysts, Naeem Aslam indicated in a report that Bitcoin is some form of a beast that has the potential of gaining 20% every day and replicate the rally it showed in 2017 before crashing.
More Speculation On What Caused The Rise
There is speculation that the growth may have resulted from an April Fools’ day joke with an article on Bloomberg indicating the U.S. SEC approved Bitcoin exchange-traded funds which may have resulted in spikes. Although crypto enthusiasts may consider this as good news this is unlikely to hold considering cryptocurrencies across the board are experiencing drops.
Julien Auchecorne the COO of XBTO told Bloomberg that the sudden growth is not sufficient to reset the crypto winter because there have not been any new products since last year with the big breakthroughs still under development stage.