Bitcoin jumped nearly $1,000 in approximately thirty minutes Thursday, giving traders their first solid momentum in weeks. The price settled around $7,600, the highest level since late March, and gain
Bitcoin jumped nearly $1,000 in approximately thirty minutes Thursday, giving traders their first solid momentum in weeks. The price settled around $7,600, the highest level since late March, and gained 11% for the day.
The move came after a brutal stretch of selling pressure and bad headlines. Media outlets hammered on "bubbles", "bottoms", and "death crosses" throughout late March and early April, making sustained recovery seem distant. When Bitcoin crossed $7,000, buying accelerated. Trading volumes jumped from $5.7 billion in 24-hour average trading to above $8 billion.
Short sellers covered as the price climbed. Matthew Newton, an analyst at eToro, attributed the surge to forced liquidations: "Whilst there has been some stability in the cryptocurrency markets over recent weeks, we've seen a record number of short positions building on major exchanges. When the price began to rise this afternoon, a large number of shorts with big positions were squeezed. The resulting interest from buyers increased momentum, causing the price to jump $1000 in 30 minutes."
Other cryptocurrencies rose along with Bitcoin. Ethereum and Bitcoin Cash each gained around 10%. Ripple surged 16%. Litecoin climbed 7%. Among the top 50 coins, only Tether and Bitcoin Diamond declined, each dropping less than 1%.
The total crypto market capitalization rose by $29 billion. Bitcoin captured $13 billion of that gain.
Rumors about George Soros, the Rockefeller family, and the Rothschilds exploring cryptocurrency investments also circulated in recent weeks. Traders may have seen such overtures from established wealth as a sign that institutional capital was warming to the sector.
