So far, 2019 hasn’t brought along much price volatility on the cryptocurrency market, but the trend is quickly changing. With this in mind, the bitcoin price recently went through a 19% increase, thus breaking the $4,200 technical barrier. This quickly led to a price growth that managed to hit $5,000 in only a few hours. At the time of writing, Bitcoin is trading at $5,245.
As it often happens, following the price swing, numerous other important cryptocurrencies went through the same change. As such, the XRP, Litecoin and EOS all increased in value. The ether price grew from $137, and is currently trading at approximately $155.
Any price swing of this magnitude begs a simple, yet highly-relevant question – why? So far, several price analysts have shared their opinion on the matter. Before we dwell into the reasoning behind the uptrend, it is important to mention that this is pure speculation, granted bitcoin’s complex marketplace.
A hoax article claiming Bitcoin ETF approval on April Fools
While this reason is highly-speculative granted that everyone double-checks whatever news they read on the 1st of April, a popular cryptocurrency website posted an article claiming that the U.S. Securities and Exchange Commission approved the Bitcoin exchange-traded fund, commonly referred to as the BTC ETF. This didn’t happen, yet investors throughout the world are looking forward to a future approval of the ETF. The SEC has pushed the decision onwards to May; therefore if the ETF review proves positive, then this will most likely lead to a massive uptrend on the bitcoin price.
After the silence, comes the storm
Recently, the cryptocurrency market has been dealing with a highly-unusual lack of volatility. To put things better into perspective, the last time volatility this big happened was November 2018. As such, sentiment has been growing on the market, and price swings were expected. In case a price correction ends up happening, chances are that $4,200 will remain the support point; hence we don’t expect values to reach lower.
The whales did it
Cryptocurrency whales often have a large influence on prices granted their massive reserves of bitcoin. As such, if lots of bitcoin is either purchased or sold, the rest of the market follows the signal. In the case of price growth, this leads to excitement, thus helping the value reach even higher thresholds.
Based on everything that has been outlined so far, we are hopeful that volatility will not bring the price lower than its original value. We’re also excited to see whether a new bullish trend is about to take over the market.