Within the space of less than an estimated couple of hours, Bitcoin’s price saw itself shoot up from the $7000 region to a two week high in the $8000 region. As expected as it was that Bitcoin’s next change in price range will be dramatic, it was not expected to increase 18 percent in a matter of two hours in such a strong move.
How Did This Happen?
When it comes to predicting the price valuation of Bitcoin or any other cryptocurrencies and the reasons for it, there is no scientific way to prove the possible reasons to be absolute facts. What can be said is that there were a lot of short positions that have been getting flushed out of the market. Since the Bitcoin market is not exactly something that can be considered liquid, any large movements can possibly result in such changes in price.
Blossom Finance, a fintech startup which is based in Indonesia, a largely Muslim country, had released a statement that reported their internal Sharia advisor coming to the conclusion that cryptocurrencies like Bitcoin are generally allowed when you consider all its nuances according to the Sharia law. This is some of the news which is being considered as a reason for the sudden 18 percent spike in the price of Bitcoin.
Another possible reason which is being considered is the fact that George Soros has approved his private wealth fund to start conducting trades in cryptocurrencies. The addition of another big fish in the cryptocurrency ecosystem could also be a possible inhibitor for such growth.
Coindesk Analyst Believes Bitcoin Price Rise Not Surprising
Omkar Godbole is an analyst at Coindesk and he is of the opinion that this bullish climb of 18 percent in a couple of hours by Bitcoin should not be surprising. Most of the cryptocurrency market is seeing more or less bearish patterns and they have been surprised by the sudden rise. The $1,000 rise has definitely been surprising with many of the stop-losses kept in place having been eaten up when Bitcoin went $200 above the $7,000 range.
He believes that the shorter liquidation and BTC sell offs are definitely a big contributing factor to this bullish rise. Following the fact that the bearish pattern has been breaking, many of the more technically sound investors might have jumped on to the ship and started to do some actual buying, further increasing the value.
As much of a sigh of relief that this sudden 18 percent rise might be for a lot of Bitcoin enthusiasts and investors, it still remains to be seen whether or not Bitcoin can actually hold on to the very significant gains that it has made with this 18 percent rise. It is also not very clear whether or not there will be an adequate buying trend forming so that this positive climb in Bitcoin price keeps up. Thursday was a good day for the world’s largest cryptocurrency but Bitcoin enthusiasts will be on their toes after this sudden change.
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