Some have written it off, stating that its best days are behind it. However, Bitcoin has once again proven the doubters wrong. The currency shot up by over 21 percent to hit the all-important $5,000 level earlier today. Making the gain even more spectacular, it happened in less than an hour.
Bitcoin shot up 21 percent between 12:30 a.m and 1.30 a.m New York time. The currency defied all odds to once again hit the $5,000 landmark, a very important milestone for the currency. Many analysts have previously stated that if Bitcoin can regain the $5,000 mark, it could set the stage for an explosion in the coming months.
The gain came at the back of a 78 percent increase in its trading volume. The 24-hour trading volume for the currency shot up from $9.1 billion to $16.3 billion. This is the highest 24-hour trading volume the currency has registered since early January last year when its price stood at $11,000. A majority of the trading volume emanated from BitMEX which accounted for 16 percent with $4 billion. Controversial Chinese exchange FCoin also contributed a huge chunk at over $3 billion.
The currency hasn’t been able to maintain its price over the $5,000 mark, however. At press time, the price stood at $4,782. This is still a 15.8 percent increase in the past 24 hours. In some markets such as Bitfinex, it’s trading much higher at $4,895.
What Led to the Flash Gains?
While the crypto community is overjoyed at the rapid gains, no one can exactly seem to pinpoint what sparked them off. Even the experts seem at a loss. Binane chief Changpeng Zhao is one of those who was puzzled by the flash gains. CZ, who has a cult-like following from crypto enthusiasts took to Twitter where he said he is clueless about what is behind the gains.
anyone know any news? I have been asked "a few" times, but honestly clueless.
— CZ Binance (@cz_binance) April 2, 2019
And yet Kraken believes that it’s solely responsible for the gains. Kraken, in an April Fool’s banter, took to Twitter to claim that since it had “announced support for the MacCoin (McDonalds’ stablecoin)”, the market had taken off. Kraken wrote:
Market showing a very strong reaction to the MacCoin (BMAC) listing. News is making the rounds. Bitcoin already up over $5k for the first time since Nov`18 in the 2 hrs since the story broke. Synergies are immense and we don’t fully yet understand the potential. Bulls smell it.
However, while the current spike injects lots of hope into the hearts of crypto enthusiast, it may not have a lasting effect. At least not according to Julien Auchecorne. Julien is the chief operating officer at XBTO International, a crypto trading and investment firm based in London. He stated:
The bounce is not enough to reset crypto winter as we have no major new products and last year’s big breakthroughs are still in their nascent stage. Sure it was a joke but it showed that the hope is for inflows and institutional infrastructure.
The joke Julien was referring to was a few widely circulated articles that indicated the SEC had finally approved two Bitcoin ETFs. The articles were part of the too-many-to-keep-up-with April Fools day jokes that were all over the internet. And while Bloomberg and other mainstream media outlets seem to think these articles could have pushed up the price, nothing could be further from the truth. The crypto community is very informed and sources its information from credible sources only.