Bitcoin nears $8,000 benchmark as massive cryptocurrency price spike prompts some head-scratching
1 month ago DieselGasoil Comments Off on Bitcoin nears $8,000 benchmark as massive cryptocurrency price spike prompts some head-scratching
After an extensive slump since the end of last year, Bitcoin prices have now spiked to a nine-month high of almost $8,000, leaving analysts and enthusiasts questioning what might have caused the sudden uptick.
Sitting at around $5,000 at the beginning of May, prices had surged by nearly 40 percent within a single week as of Monday. Despite slight corrective fluctuations, Bitcoin appears to be on course to break the $8,000 limit, having already surpassed the current yearly highs.
According to Coindesk price charts, this is the sharpest increase the cryptocurrency has seen since July of last year when it rose over $2,000 in under two weeks, which has naturally led to a huge amount of speculation about what is driving the current market.
While no single factor can explain what led to the increase, prominent crypto-analyst Alex Krüger suggested that the trend appears to indicate large, institutional and systematic buying.
What drove $BTC up this week?
A handful of large players, that started buying in waves. Systematic buying.
Clues to reach that conclusion can be found in volume, price action, funding, and futures basis and term structure. May expand on this later.
Not retail driven.
— Alex Krüger (@krugermacro) May 12, 2019
Numerous commentators on Twitter attributed the change to rising tensions between Washington in Beijing as trade war negotiations took a turn for the worse on Monday.
BREAKING: 🚨 🚨
China will raise tariffs on US goods on the 1st of June
Gold is currently up $11.00
— Gold Telegraph (@GoldTelegraph_) May 13, 2019
Bitcoin prices for Monday! 7,300 and ⬆️
Continued escalation in the US + China trade war have likely given prices a boost. Analysts expect a pull back to ~6,000 while we all hope for prices to keep climbing.
— KP (@katelyn_perna) May 13, 2019
After US President Donald Trump tweeted an ultimatum at his Chinese counterpart Xi Jinping on Monday, China hit back announcing $60 billion dollars in new tariffs on American goods, leading to large drops in the global stock markets, including the DOW plunging more than 700 points.
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