Bitcoin was trading at a price of $8,111.82 up 2.47% percent on Coindesk at the time of reporting.
The popular cryptocurrency Bitcoin received an unexplained surge that boosted the values overnight. The digital currency prices rose by over $1,000 scaling $8,000-mark for the first time in two weeks. Bitcoin was trading at a price of $8,111.82 up 2.47% percent on Coindesk at the time of reporting. The biggest hour of trading in Bitcoin in its entire history was recorded yesterday night with over $270 millions virtual coins changing hands in 55 minutes.
The Bitcoin price received a boost of over $1,000 with over 38,000 coins changing hands. However, there is no clear explanation for the sudden jump in price. Maybe as cryptocurrencies are extremely volatile in nature and subject to big price swings such a development happens.
“In this scenario traders with short positions will start to lose money and liquidate their positions by buying bitcoin,” Ed Cooper, head of mobile at fintech startup Revolut, told The Independent.
“This causes the price to rise further and as more people start to notice the rise they buy in for a quick gain. This continues the cycle,” he added.
Tough year for Bitcoin
In the first quarter alone, over half of its market capitalisation for Bitcoin or the cryto-market was washed off. There have been various speculations of regulation which were witnessed in the last few weeks which have injected fears among the crypto-investors.