Yesterday (April 2) at around 12:30 in the afternoon, Bitcoin for several days in the sideways launched a wave of soaring prices. In less than an hour, the price climbed rapidly from $4,196 to 15% to the highest point of the day. The $4,849 hit a new high since November last year.
Screenshot from: Coinmarketcap
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This long-lasting Jedi counterattack broke the silence of the cryptocurrency market for nearly three months; at the same time, the reasons behind the skyrocketing price have become the focus of widespread market attention.
The most popular guess is that the SEC accidentally approved the market carnival triggered by the listing of the Bitcoin ETF. It is reported that on April 1st foreign media Finance Magnates reported the news "Shock! SEC through the Bitcoin ETF" and said that Bitwise Asset Management And investment management company VanEck will issue the Bitcoin ETF early next month.
The news was translated and reported by the FX168 Financial News Agency, and the discussion was quickly spread among the WeChat groups. But soon everyone realized that the SEC, which had just delayed the decision on the Bitwise proposal in the past few days, could not suddenly approve the issuance of the Bitcoin ETF. The news was only Funance Magnates and everyone's April Fool's Day joke.
The picture on the left is the report of Finance Magnates, and the picture on the right is the report of FX168 Financial News.
In addition to the above oolong, there are other strange bitcoin good news on April Fool's Day, such as this one that is purely funny.
Note: Wakenda does not exist. It is a fictional African country in the American Marvel comics (image: bitcoinwarrior.net)
And the "new discovery" of Reddit users u/ph5il. He posted that Nasdaq had opened the BTC/USD transaction, but did not find a chart of the relevant transaction pair on the website that was attached to it; and the related link has now been deleted.
Image taken from: Reddit
Of course, most analysts believe that fake news is not enough to promote bitcoin skyrocketing, market cyclical rebound demand and the flood season is the main incentive. According to the experience of previous years, after the winter of 2014 to 2015, the bitcoin price will increase significantly in April, and this is closely related to the flood season.
The flood season means more abundant and cheap power resources. At this time of the year, the whole network computing power and bitcoin prices have increased periodically. The entire mining industry hopes to get the most benefit in this short-term flood season. The miners who have been raging for a long time in the bear market seem to have a stronger willingness to pull this year. Therefore, the rumors about the joint operation of the mining machine in the market are not groundless.
Similarly, the CEO of BCB Group, a London-based cryptocurrency company, believes that the bitcoin boom has been behind the scenes. He told Channel NewsAsia that the bitcoin rally could be caused by a $100 million algorithmic trading order on Coinbase, Kraken and Bitstamp. Among the three exchanges, an order for automatic trading bought a total of 20,000 bitcoins, which led to algorithmic traders buying orders to catalyze the rise in bitcoin prices.
Forbes cryptocurrency analyst Joseph Young also mentioned on Twitter that according to the Bleeding_Crypto market, a large order of $80 million has recently been sold for $4,200. However, in his view, the sharp rise in Bitcoin yesterday was only technical; once it broke through $4,200, it would soar.
Screenshot from: Twitter
From the news surface to the technical side, from the market environment to the development of bitcoin, there are many discussions on the cause of this surge in the market:
- According to OKEX CEO Jay and people familiar with the matter, this surge seems to start quickly on OKEX. The industry website Cryptocompare also showed that during the soaring bitcoin price, its trading volume increased three to four times to 6 million pens/hour, and most of the transactions were concentrated on Asian exchanges.
- Analysts, including Xiao Lei, also believe that the introduction of two new cryptocurrency-related bills by the US Congress has also played an indirect positive role. It is understood that the bill was proposed on January 30 to address price manipulation issues and enhance the US competitive advantage in emerging industries; their final adoption will help the Bitcoin ETF to obtain approval.
As for the real cause of the skyrocketing, as the CEO of Coin and OKEX said, "I don't know anything about it." However, judging from the gains of yesterday afternoon and this morning, it is certain that the rise is the Asian market or, more specifically, the Chinese investors.
No matter who does the good thing, I don’t know how long this round of growth will last. After spending more than a year in the currency circle, I decided to add a chicken leg to my takeaway.
(Source: Hash School ; Author: Hash send hashpie – LucyCheng)