Bitcoin nears $8,000 benchmark as massive cryptocurrency price spike prompts some head-scratching
Sitting at around $5,000 at the beginning of May, prices had surged by nearly 40 percent within a single week as of Monday. Despite slight corrective fluctuations, Bitcoin appears to be on course to break the $8,000 limit, having already surpassed the current yearly highs.
According to Coindesk price charts, this is the sharpest increase the cryptocurrency has seen since July of last year when it rose over $2,000 in under two weeks, which has naturally led to a huge amount of speculation about what is driving the current market.Also on rt.com ‘Bitcoin is fool’s gold’: Peter Schiff weighs in on calls to replace gold with cryptocurrencies
While no single factor can explain what led to the increase, prominent crypto-analyst Alex Krüger suggested that the trend appears to indicate large, institutional and systematic buying.
What drove $BTC up this week?— Alex Krüger (@krugermacro) May 12, 2019
A handful of large players, that started buying in waves. Systematic buying.
Clues to reach that conclusion can be found in volume, price action, funding, and futures basis and term structure. May expand on this later.
Not retail driven.
Numerous commentators on Twitter attributed the change to rising tensions between Washington in Beijing as trade war negotiations took a turn for the worse on Monday.
BREAKING: 🚨 🚨— Gold Telegraph (@GoldTelegraph_) May 13, 2019
China will raise tariffs on US goods on the 1st of June
Gold is currently up $11.00
Bitcoin prices for Monday! 7,300 and ⬆️— KP (@katelyn_perna) May 13, 2019
Continued escalation in the US + China trade war have likely given prices a boost. Analysts expect a pull back to ~6,000 while we all hope for prices to keep climbing.
After US President Donald Trump tweeted an ultimatum at his Chinese counterpart Xi Jinping on Monday, China hit back announcing $60 billion dollars in new tariffs on American goods, leading to large drops in the global stock markets, including the DOW plunging more than 700 points.Also on rt.com China strikes back at Trump's new tariffs, targeting $60 billion in US exports
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