Bitcoin has finally broken the barrier of $4000 after some unpleasant days in the $3000 region. It has led to several popular cryptocurrencies showing improvements and flashing green too. As a result, the cryptocurrency market has added over $10 billion in market value in a single day. A few people expressed their love about the current movements in the market – but some people brought up the ‘decoupling’ issue – meaning that alts shouldn’t increase in price when the BTC is increasing too, each should have its own path.
“People are looking to reduce their exposure and closing out high-risk sell positions before the holidays, and this is creating upward pressure on market prices, which is ultimately resulting in a rally,”
The trend that Greenspan is describing is witnessed when analyzing Bitcoin Cash (BCH). BCH has surged upwards suddenly. Bitcoin Cash is seen to rise by 35.01% in the last 24 hours, priced at $172.37 with a market capitalization of $3,020,037,432.
Mike Novogratz commented about the recent bitcoin growth too:
“We had a bubble, it popped, we’ve had a monster correction, altcoins are down 98%, Ethereum’s down by 90+%, Bitcoin is down by 85%, we’ve had the correction, and a lot of people say that this was Tulips, well, it wasn’t Tulips, it was a mania built on something that’s real.”
The Crypto market has been in a downward spiral ever since the Bitcoin Cash hard fork that occurred on November 15th. Bitcoin fell from $6,000 all the way to levels of $3,000 scaring many in the Crypto space. The rise above $4,000 is not so exciting yet – as the upwards movement is not confirmed yet. . However, it does give back positivity among cryptocurrency enthusiasts.
The sudden spike may also be linked to the Federal Reserve increasing interest rate leading to the Dollar becoming weaker. Hence there is a growing a demand of assets like cryptocurrency. It can also be due to a massive institutional demand that also made the OTC trading increase drastically in 2018.
However, Bitcoin’s volatile nature has got many scratching their heads wondering if surpassing $4,000 is a bull trap or the beginning of a bull run.
The prices will have to remain above $4,000 for a few days before confidence starts building up. However, with holidays coming up, it is most likely to stabilize for the next one week till January 2019 begins. Then again, its the cryptocurrency markets and they are active 24 hours 7 days a week, so anything is possible!
Image Source – Flickr
Subscribe to our Newsletter to be a part of our future $1,000 per month contests.