Bitcoin rose by over 15% in the week ending 13 April, from a low of $6,000 to $8,000. At one point the cryptocurrency made a massive hike of $1,100 within just 30 minutes on 12 April. Some analysts have commented that Bitcoin trades during this 30 – 60 minute window were an indication of the highest level of trading ever experienced in its history.
Steep Rise For Bitcoin
The steep increase in price for Bitcoin means that it is still below its 23 March value of $8,918, but analysts are beginning to forecast that it could be the start of a price recovery. Bitcoin’s daily trading volume is over $9 billion, so it’s considered that several billion dollars of new capital entered the market in order to cause such a massive spike in the price.
The Bitcoin price surge did not affect values of other cryptocurrencies as the entire market increased by over $20bn on 12 April. It’s possible that a few institutional investors injected billions of dollars into the cryptocurrency market over a short time period, causing the price of Bitcoin to surge in such a phenomenal fashion.
Potential Bitcoin investors would be wise to exercise caution, however, as Bitcoin has been fairly volatile over the past few months. The cryptocurrency reached record highs of over $17,000 in December 2017, but has performed badly throughout 2018.
All cryptocurrencies experienced falling values in early 2018, which could be down to fears surrounding the possible introduction of regulatory restrictions. There were a number of regulations introduced on cryptocurrencies in South Korea in January 2018, and Japan and India have also indicated they plan to crack down on digital currencies.
One expert in cryptocurrency, Thomas Lee, who is one of the founders of Fundstrat, has predicted that Bitcoin will reach a high of $25,000 by the end of 2018, and numerous other forecasts are bullish about the cryptocurrency. Mr Lee commented: “When you look at metrics like price-to-book, which is ‘money cost,’ or our bitcoin misery index, it’s pretty much what you saw at the end of the 2014 bear market, not the start.”
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