Massive price gains for Bitcoin, following a substantial purchase by a mystery investor last week, has positioned the cryptocurrneyc market for a revival in fortunes in the second half of hteyear, according to analysts.
Prices has soared over 20 percent, breaking $5,000 for the first time since mid-November. The sudden move is believed to be triggered by an order worth about $100 million spread across U.S.-based exchanges Coinbase and Kraken and Luxembourg’s Bitstamp.
“If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour,” Oliver von Landsberg-Sadie, chief executive of cryptocurrency firm BCB Group, said.
Bitcoin surged to near $20,000 in late 2017, the peak of a bubble driven by retail investors. But last year prices collapsed by three-quarters, with trading dominated by smaller hedge funds and crypto-related firms.
“Bitcoin is on fire at the minute as it punches through its previous resistance level. The break above $4,200 was critical, as the market had been watching that level for a while,” said Simon Peters, an analayst at the online trading platform eToro.
Short sellers covering their positions have also been credited with supporting the recent rise, adding to upward pressure on the price.
“If we see the price hold above $4,200 going forward, it could be a sign that we are finally out of the bear market,” Peters adds