After an awful first 4 months for Bitcoin and cryptocurrency investors alike, this week has finally seen some positive news in terms of the Bitcoin price. Rewind just 7 days to April 7th and the Bitcoin price was at the new ‘all time low’ for 2018 at just $6625 (roughly £4650)… After a $1,000 increase in just 30 minutes on April 11th, there is certainly a more positive mood around the overall Bitcoin price. But what has caused this Bitcoin price surge?
What has caused this Bitcoin price surge?
When the Bitcoin price surged by over $1,000 in half an hour it was clear that some huge money was moving into the market. This increase in volume is what caused the initial Bitcoin price surge, but how significant was the volume and is the volume actually what caused this Bitcoin price surge?
CryptoRae tweeted confirming the volume had surged to $1.2 billion in just one hour, the highest ever trading volume in any one hour period of all time.
Ready to have your mind blown? More Bitcoin traded hands in that one hour than *any other time in history*.— CryptoRae (@cryptorae) April 12, 2018
BTCUSD volume: ~$550M
XBTUSD volume: ~$635M
That's $1.2 billion trading volume in one hour! pic.twitter.com/abnthbOq5n
While there is no way of knowing for certain what has caused this Bitcoin price surge, it is safe to say this huge increase in volume has played a big part in the Bitcoin price increase and also the general increase in the entire cryptocurrency market cap. We know for definite that a huge amount of new money has moved into the market and this could be the kind of thing that ends the bear run but it is hard to say if the 2018 Bitcoin bull run has started
Throughout 2018 a lot of traders have been taking short term profits given the downward trend of the markets. This has been argued by many that it is causing the markets to keep dipping. Everyone is looking to sell to take short terms profits and not as many are looking to “Hodl” long term.
Overall interest in the cryptocurrency market does seem strong and it is hard to say if we are at the end of the bear market but it is certainly a positive sign and only time will tell. Looking at the below chart… If previous years are anything to go by, April and May seem to be the start of an upswing for the Bitcoin price.
One thing is for sure, we will find out if this is the start of a surge in the Bitcoin price. Let us know your thoughts