Bitcoin registered a spike above $20,000 on Wednesday as the US dollar weakened.
As per data from TradingView, a charting platform Bitcoin hit its high of $20,191. “Bitcoin had a jump of 4.72% owing to the increased demand from Institutional investors looking to boost their holdings before the next price rise. Ether is at its highest point since the merge, showing an impressive double digital gain of over 10%,” Mahin Gupta, founder, Liminal, a cryptocurrency wallet infrastructure company told FE Blockchain.
Meanwhile, Coinglass, a cryptocurrency monitoring tool revealed that for the first the market faced fewer fluctuations.
At the time of writing the story, TradingView – a cryptocurrency trading platform stated that the total number of short positions which were liquidated for Bitcoin had reached a multimonth high of almost $165 million on the day. Over $400 million was liquidated in cross-crypto short positions.
Moreover, Bitcoin jumped by 4.72% owing to the increased demand from institutional investors, looking to boost their holdings before the next price rise. Meanwhile, Ether is at its highest point since ‘The Merge’, showing an impressive double digital gain of over 10%.
Meanwhile, Trader and analyst Il Capo, a cryptocurrency trading platform noted that BTC had beaten altcoins in terms of gains. The listed crypto-centric companies like Coinbase and Microstrategy also reported positive earnings.
As per industry analysts, the U.S. Federal Reserve’s continued efforts to control inflation without sending the economy into recession continue to capture investors’ attention. “Crypto investors were given some hope this week by flimsy indications that the Federal Reserve will raise rates more gradually in the early part of 2019 as opposed to its present schedule of 75 basis point rises,” Swarup Gupta, finance and service lead, Economic Intelligence Unit (EIU), said.
Yet another factor that could play a key role, is the leadership change in the United Kingdom, which signaled a strong commitment toward economic recovery. It is believed that this will significantly impact the global financial markets in the coming weeks. Furthermore, the UK’s consumer price index (CPI) for October will be announced by mid-November, and the Federal Open Market Committee (FED FOMC) interest rate decision will also impact the pricing in the coming months.
According to Saurav Raaj, founder, Wize, a business application service provider, it’s possible that the interest rate decrease in December would result in a crypto surge, but it’s unknown if it would lead to another bull market.