Market values have gone up and are still going up, thinks are ticking by quite nicely with Bitcoin up 18.24%, finally over the $8,000.00 mark, Ethereum up 22.24%, coming in at $517.24, Ripple up 24.64% at $0.63 and Bitcoin Cash up 14.65%, coming in at $760.00. *
*Figures according to coinmarketcap.com at the time of writing
Yesterday’s bull run has had a positive effect across the board and experts are predicting this good fortune to continue, with waves of upwards behaviour expected within the markets over the next few days.
This has caused a media storm, posing the question of what has actually caused all of this, or rather, who has actually caused this.
Here are the rumours as we see them today – please note that we are not saying any of these are right or wrong, there’s just a lot of speculation around at the moment so here it is, summed up by your favourites at Crypto Daily.
US Tax Day
Many people are blaming US Tax Day for this surge. The looming tax deadlines next week may have caused a mass sell off of assets this week in order for traders and holders to avoid paying so much tax on their capital gains. Moreover, some are suggesting that many people would have needed to sell off a wealth of their assets in order to afford their looming tax bill. Due to the delay of the blockchain processes, this mass selloff may have occurred at the start of the week but has only started to have an impact towards the end of the week.
Overall, you would expect that those who had large tax bills as a result of cryptocurrency would have sold off their assets some time ago, so the integrity of this rumour may be questioned. Either way, if people have contributed to this surge through a mass selloff, I would assume they are kicking themselves now after prices sky rocketed yesterday.
Threat of Military Action on Russia
This is the next rumour. We know international relations does in turn have an adverse effect on the cryptocurrency markets, as with the traditional stock markets because ultimately, people’s behaviour changes, mostly through trust. Globally, there are reports of some states considering military action in Syria in the wake of alleged chemical attacks by the Russian military in the area. Politics is something we keep away from here, so, moving on, how does this affect the markets?
Well, people are suggesting that the reports are encouraging people in some areas to start buying cryptocurrencies who already have a wealth of shares in countries like the USA, as impending military action may mean the value of their assets over there could decrease. Therefore, by purchasing cryptocurrencies they are able to move their finances without raising any suspicion and in turn are attempting to alleviate some of the risk that seems to be developing over the past few days.
US Sanctions for China
Again, as this political, I’ll keep it short. Both the USA and China are allegedly imposing sanctions and tariffs upon products and services within each other’s borders. For the cryptocurrency markets, this again means that people with assets in these countries may see values decrease as a result of uncertainty caused by political tensions so, the rumour is, is that people are rapidly buying into cryptocurrencies in order to move and secure their assets elsewhere.
These are the three key rumours floating round at the moment. They are of course all rumours based upon what we are seeing trending in the mainstream media at the moment. The chances are is that this surge in market prices has had a wealth of contributing factors, perhaps some of which are included in the above rumours but moreover, there are numerous other factors that could be causing the trends we are seeing at the moment.
So, to refer back to the title, who is to blame?
We can’t tell, sorry!
As I have said, there’s so much going on right now it’s almost impossible to pin point direct causes, this is just a visual display of how volatile the cryptocurrency markets are, I believe this is just an organic product of a million different contributing factors.
The important thing to take from this is that it has happened and, it’s starting to look like a good thing too.