April 2018 marked a fresh breath of air into the crypto market. Bitcoin and most of the top 100 altcoins saw a big surge. The surge came out of nowhere, with traders reaping big. But that’s the thing with the volatile crypto market. No one knows what will happen next. At the time of writing the article, the price is at $5,147 and increasing!
We sat down and looked at the factors that might have caused the price uptick. Take a look at our reasons, and let us know what you think!
A Massive Bitcoin Whale Moving $100 Million
For the price to move up, and move up fast, someone is buying – and is buying big. Come to think of it – where did all the demand come from? High demand drives up the price.
It is much easier for one person to make a decision to buy up coins; compared to a group of people deciding simultaneously that they should buy.
According to a Reuters report, a whale has been spotted buying 20,000 BTC. The whale spread the order, worth about $100 million, across three exchanges. The buying spree lasted an hour or so, on April 2nd.
Bitcoin Bottoming Out after a Year of Declining Prices
Another possible reason for the boost in Bitcoin price may be a Bitcoin bottom. In 2018 and the better part of 2019, the price declined to unprecedented lows. This long lull gave an opportunity for smart money to gobble up most of the coins in circulation when the prices were low.
It makes sense to say when HODLers mop up most of the coins, the supply thins out and the price goes up. This, combined with the next scheduled ‘halvening’ event almost coming up, is causing the price to soar. The bears might have become laggard, giving the bulls a chance to rally.
It’s now at $5147
Historically, it has been a hard sell to predict what would happen after big rallies. Here is what some experts are suggesting.
According to Brian Kelly, a Bitcoin bull, the next target will be at $6,000. This means that investors who have not purchased some coins during the bottom should take this opportunity to get some.
HODLers may rest easy and see if Bitcoin keeps at the $5,000 support level. According to Kelly,
Even high net worth individuals, family offices, are starting to take a serious interest. There’re a couple major brokerage firms that are rolling out some custody solutions. So, there’s quite a bid going on under the surface.
Do you think Bitcoin will hit $6,000 soon? Let us know in the comments section below!
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