Bitcoin price soar: What is behind today’s sudden spike in BTC price?

Bitcoin finally brought some smile on the hodlers faces on Monday, finally topping the $3,400 level after weeks of plummeting. What could be the reason for this sudden soar?

Traders have pinpointed the move to the activity in Asian markets, buying on Japan and Hong Kong-based exchanges lead the bulls on the first day of this week. This was bitcoin’s biggest daily rise since November 28.

The cryptocurrency has slumped by more than 80 percent from the dizzying all-time heights it reached a year ago. On December 17, 2017 bitcoin’s unbelievable skyrocketing culminated just above $19,475, according to CoinMarketCap.com. It has been all pain ever since.

Overall decrease is 84% compared to Bitcoin’s all-time high or put in other words, if you invested $1,000 in Bitcoin a year ago, it would be worth only $160 right now.

Monday’s move was its best daily performance since the last week of November, according to industry data site CoinDesk. The cryptocurrency jumped 11 percent to a high of $3,437.57, but has dropped by more than 50 percent in the past three months. CNBC quotes eToro’s Mati Greenspan:

“As a relatively new concept, cryptoassets are still finding their feet in terms of value,” said Mati Greenspan, senior market analyst at eToro. “It’s important to remember that all assets, in every market, experience a process of price discovery, and that cryptos are no different.

 

Nick Cawley, analyst at Daily FX told Express.co.uk.

He said: “Bitcoin is only around $250 above the recent 15-month low made last week.”

Cawley disputed the reason for the price jump and said the $150 spike on the one-hour chart shows a lack of sellers more than a heavy buying interest on foreign markets.

He added: “Bitcoin remains weak and a fresh test of the September 2017 low at $2,970 remains on the cards, and if this level does not hold the next level of support, the July 2017 low at $1,760, will come under pressure in the coming weeks.”

The growth also ushered in some institutional interest. Fidelity announced a cryptocurrency custody solution this year, and the Nasdaq and NYSE’s parent company ICE both plan to launch bitcoin futures in 2019.

“Since its inception 10 years ago, bitcoin has already experienced four retracements, similar to what we’ve seen in the past year,” Greenspan said. “Bitcoin will find its natural centre of gravity, it’s just a matter of time.”

Where will Bitcoin go from here? Anyone who claims to know the answer to that is engaging in baseless speculation.

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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Torsten Hartmann

Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.

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