Everyone was struck by the quick rise of the cryptomarket that has occured over the past day or two. Bitcoin (BTC), and almost every altcoin, has seen double digit green figures, and the former reached its highest value since November 2018.
The change in market price was a surprise to many as it had come quite out of the blue. Reuters reports that the spike was the result of an anonymous crypto whale making a large sale, which subsequently triggered bots to execute a large volume of trades.
Oliver von Landsberg-Sadie, founder and CEO of digital assets firm BCB Group, said that an order of $100 million, roughly 20,000 BTC, divided between Coinbase, Kraken, and BitStamp is what activated the frenzy of trading,
There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC. If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.
Historically big order trades tend to spur other traders into making investments, especially those who conduct trades with the aid of algorithms. Furthermore, the price of altcoins is strongly correlated to that of Bitcoins, which surge when the latter does.
Of course this may not be the only cause for the price spike, as it is very hard to pinpoint the exact developments that lead to the market’s change in price.
Bitcoin prices have remained stagnant in the range of $3500 – $4000 for months now and the recent spike is representative of the market’s tendency to jump or fall in price in a short span of time.
Nonetheless, the market is tantalizing investors by showing signs of escaping its long drought, and many are hopeful that they can make great gains in the next bull run. Tom Lee of Fundstrat had said that he gives the market a window of roughly 6 months before it picks up and heads to much greater highs, pointing to the 200 day average as a technical sign for the market’s growth.