What’s The Real Reason Why Bitcoin Price Shot Up Today?
By CryptoZink.io on Altcoin Academy
Bitcoin has been scaring the mess out of crypto investors over the past two weeks. BTC lost $1,000 per coin in just a couple of days. Investors went into panic mode and ran for the hills by the masses. In a flash, Bitcoin shot back up.
The Bitcoin rally started earlier today and doesn’t seem like it’s going to slow down anytime soon. The first and most popular cryptocurrency just crossed the $10,000 price range, trading up 26%. On Thursday, the Bitcoin price dropped a 4-month low of $7,000 per Bitcoin.
No one expected Bitcoin to break the psychological $10,000 mark so soon. As it comes as a shock to everybody, investors are looking reasons to attribute to the sudden price increase.
As Bitcoin price starting to shoot up, other major cryptocurrencies such as Litecoin, Ripple, Ethereum took notice and started trading green. In fact, the entire crypto market right now is experienced increases that have not been seen since the crypto gold rush in the years 2017 and 2018. Ethereum price is up 18.62%, Bitcoin Cash 26.84%, Litecoin 20.20% and Ripple sitting at 11.45%.
In 2017, the Chinese government decided to ban bitcoin and cryptocurrency exchanges altogether. In a sign that China may reverse its cryptocurrency stance, the Chinese president, Xi Jinping today made some blockchain comments some investors are attributing the sudden Bitcoin price increase to.
“We must take the blockchain as an important breakthrough for independent innovation of core technologies,”
Xi said today in Beijing while attending the 18th collective study conference at the Political Bureau of the Central Committee.
“[We must] clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation,” Xi continued.
So What’s The Real Reason Why Bitcoin Price Shot Up Today?
Yesterday, investors were blaming Congress for its hard treatment of Facebook founder and CEO Mark Zuckerberg for his Libra stablecoin ambition. Now investors are giving China and Xi Jinping is getting all the credit for the sudden crypto market rally. But no so fast.
Let’s take a look at the real reason why Bitcoin price shot up and bringing along with it the rest of the cryptocurrency market.
When bitcoin price started to recover something was noticed. At about $200 on the positive, crypto analytics provide, Eskew uncovered that some investors were shorting their positions by $150 million worth. The $150m were liquidated from the Seychelles-based crypto exchange, BitMEX.
The short sales triggered what is called a “short squeeze.” A short squeeze can increase the value of an asset rapidly when sellers attempt to cover their positions. This results in temporary increase in prices due to increased buying volume.
So enjoy the the ride crypto investors, it may short live.
What’s your reason why Bitcoin price shot up today? Please share your opinion on the comment section below.
Originally published at https://www.cryptozink.io on October 26, 2019.
