Bitcoin crosses the $5000 mark for a few minutes, leaving many scratching their heads
Why did Bitcoin (BTC) rise 20% in value in half an hour is anyone’s guess. But it did today.
BTC skidded through three key resistance levels at $4,200, $4,420 and $4,567 on the way to $5000+.
many analysts predict could go to as high as $5,500 in the upcoming days, according to CCN.
Should the FOMO people rush to buy before BTC rises to $10k?
“The Bitcoin market and crypto market, in general, continues to be small relative to the rest of the markets -- and emotional,” Jehan Chu, managing partner at blockchain investment and advisory firm Kenetic Capital told Bloomberg.
“It’s still very much subject to waves of enthusiasm. I don’t think today is anything special, other than a temporary enthusiasm.”
Well, it is exciting.
Say hello to BTC @ $5000
After hovering around $4,000 for days (even perhaps months), BTC reached a high of $5,106 on Bitfinex – a new all-time high for 2019, according to the Dailyhodl.
Trading volume has also skyrocketed for BTC, up 125% from $289.5 to $655.2 million on the Real 10 Volumes index over the past week.
Over the last 3 months, BTC swung between $3,217 and $4,000.
Ethereum is trading at over $150, up 6.06%. XRP is trading at $0.3323, up 6.77%. Litecoin is trading at $67.42, up 11.17%.
Crypto hedge fund Tetras Capital outlined bullish reasons why the crypto marketing is suddenly on the move, including ongoing US quantitative easing, baby boomers retiring, the upcoming US election and the Bitcoin halving set to happen in May of 2020.
Fundstrat co-founder and head of research Tom Lee said:
“... definitely a number of macro factors acting as tailwinds for BTC. Several of which were headwinds in 2018.”
The price of BTC shot up 17% within 30 minutes on Tuesday, reports Coindesk.
“Bitcoin’s market capitalization has also risen significantly, up $5.1 billion on the day to $78.8 billion, its highest since Nov. 22, 2018,” said Coindesk.
The bitcoin price recorded a massive surge from $4,200 to nearly $4,800 within minutes, demonstrating a 20% gain in a short time frame, according to CCN.
“Earlier this week, economist and global markets analyst Alex Krüger said that a price movement of bitcoin above the $4,200 level will mark the end of the bear trend beginning January 2018, lasting 16 months,” said CCN.
BTC wait & see?
BTC has lead a surge in virtual currencies and ended 3 months of calm in the $160 billion market, according to Bloomberg
“Traders struggled to pinpoint a reason for the rally, which briefly lifted Bitcoin above $5,000 and increased the value of digital assets tracked by CoinMarketCap.com by about $17 billion in less than an hour, says Bloomberg.
“While sudden swings in Bitcoin are nothing new, price action in the virtual currency has been relatively subdued this year as investors weighed the prospects for more mainstream adoption after last year’s 74% crash.”
Big buy or sell orders in Bitcoin can often lead to outsized moves while trend-following individual investors can also exacerbate volatility.
It’s FOMO vs WNC (wait & see). Which side are you on?