The unexpected rally in Bitcoin price (BTC) has stunned several investors and analysts. The price hike of more than 100% in 45 days alone led investors to wonder whether the largest coin is heading towards a new price bubble.
Bitcoin price started soaring from $4000 level at the beginning of April; the coin has since broken past the $5000, $6,000, $7,000, and $8,000 levels with ease. This crypto coin is currently hovering in the range of $8000 level after hitting ten months high of $8300 mark this week.
Crypto markets are well known for pump and dump schemes. This is because investors are cautious about the future price movement; the traders are yet thinking that how or where the rally started. Due to the FOMO, users inadvertently invest their money in make money quick or unknown automatic trading platforms like Bitcoin Loophole. New investors need to read about all the market before investing heavily in the market.
Some market participants claim the Bitfinex controversy has helped in creating a bull-run. Bitfinex CTO Paolo Ardoino claims $1 billion of fresh cash has come into the market. Other think Microsoft’s entrance in the crypto and blockchain market along with Bakkt’s announcement of bitcoin futures contract later this year pumped the rally.
“There’s been no shortage of explanations for the recent spike, some more ludicrous than others and none that are nearly significant enough to match the size of the leap we’ve seen,” said Craig Erlam, senior market analyst at Oanda Corp.
Altcoins, on the other hand, are also following the bullish pattern. Ethereum and Ripple XRP are standing at the highest level in the last ten months. The broader cryptocurrency market rally has increased the total market capitalization to $250 billion.
Cryptocurrencies are the most speculative assets. They have the potential to make or erase billions of dollars only due to speculations and key market events. The latest rally in bitcoin price rekindles the memories of 2017 when BTC price jumped from $1000 level to $20,000 and then the price crashed to $3000 levels in mid-2018.