{"id":125788,"date":"2019-04-05T16:31:16","date_gmt":"2019-04-05T13:31:16","guid":{"rendered":"http:\/\/ww-vb.mine.nu\/w108\/for-better-or-worse-were-still-obsessed-with-bitcoins-price\/"},"modified":"2019-04-05T16:31:16","modified_gmt":"2019-04-05T13:31:16","slug":"for-better-or-worse-were-still-obsessed-with-bitcoins-price","status":"publish","type":"post","link":"https:\/\/hameed.nwar.uk\/sa\/for-better-or-worse-were-still-obsessed-with-bitcoins-price\/","title":{"rendered":"For better or worse, we\u2019re still obsessed with Bitcoin\u2019s price"},"content":{"rendered":"

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Cryptocurrencies are renowned \u2013 and often criticized \u2013 for their volatility. It\u2019s what makes them both risky and attractive for skeptics and investors.\u00a0<\/span><\/p>\n

Over the past decade, the mainstream press has largely ignored Bitcoin, BTC<\/a> generally focusing its coverage on the digital currency\u2018s association with crime and its sudden price movements.<\/p>\n

It\u2019s therefore not surprising that Bitcoin\u2018s recent value rise resulted in countless\u00a0headlines, with many industry commentators taking the opportunity to chime in.<\/p>\n

To recap, Bitcoin\u00a0hit the $4,000 mark for the first time since January on March 27 and continued to rise until it surpassed $5,000 on April 3.<\/span> At the time of writing Bitcoin<\/span> stood<\/a> at just over $5,000.<\/p>\n

\"Bitcoin
<\/a>Bitcoin Price Chart via Messari<\/figcaption><\/figure>\n

Unlike fiat currencies, such as the US dollar, which are controlled and regulated by central banks and governments, Bitcoin is knowingly allowed to roam free in the wild. So, while we can potentially explain a drop or an increase in the dollar\u2019s price based on specific world events, when it comes to Bitcoin, we\u2019re often left to speculate.<\/p>\n

With this in mind, Hard Fork decided to take a look at the most discussed and likely triggers for the price jump. Here\u2019s what we found.<\/span><\/p>\n

\u2018A big order\u2019<\/h2>\n

Outlets, including Reuters, echoed the theory that Bitcoin\u2018s staggering price rise could have been due to a huge order placed by a mystery buyer<\/a>.<\/p>\n

According to Reuters\u2019 report<\/a>, exchanges in the US and Luxembourg seemed to have processed a single purchase worth about $100 million. Although cryptocurrency exchange BitMEX downplayed<\/a> this theory, noting that only a fraction of its clients\u2019 positions were affected by the volatility.<\/p>\n

It goes without saying that purchasing Bitcoin is not the same as buying a bond, a stock or investing in fiat currency. This means that monetary policy, inflation rates, and economic growth metrics, which typically impact the value of currency don\u2019t apply in the cryptocurrency arena.<\/p>\n

Several factors can impact Bitcoin\u2019s price<\/a>: the supply and market demand, the number of competing cryptocurrencies, the exchanges it\u2019s traded on, regulations governing its sale, and its internal governance.<\/p>\n

Theories about market controllers have been around for a while. In October 2014,\u00a0a Bitcoin whale<\/span><\/a> liquidated some 30,000 Bitcoin for $300 a\u00a0coin. At the time, many traders and speculators believed it would cause havoc in the market, but the order was actually ripped through by buyers and Bitcoin\u2018s price\u00a0increased to $375 a piece.\u00a0<\/span>This event forms part of\u00a0Bitcoin\u2019s colourful history, with the trader now widely referred to as \u201cthe bear whale.\u201d\u00a0<\/span><\/p>\n

An April\u2019s Fools joke<\/h2>\n

Other outlets<\/a> highlighted the potential effect of an April\u2019s Fools joke published by Finance Magnates, which claimed that the US Securities and Exchange Commission had taken the decision to approve a Bitcoin-based exchange traded fund (ETF).<\/p>\n

If true, Bitcoin enthusiasts would have seen this as a monumental positive for the cryptocurrency, but unfortunately, the US regulator has\u00a0consistently failed to make a positive ruling on the ETF<\/a>.<\/p>\n

\"Bitcoin
<\/a>Bitcoin Price Chart via Messari<\/figcaption><\/figure>\n

Finance Magnates\u00a0eventually updated its article<\/a>\u00a0to clarify it was a joke, but by that time, Bitcoin\u2018s value had already surged considerably. In fact, charts show that Bitcoin\u2018s price rose by 20 percent in less than an hour, hitting $5,080 on April 2.<\/p>\n

The article\u2019s timing means it\u2019s unlikely that it was solely responsible for driving the price, but it could have possibly helped fuel a positive movement in the market.<\/p>\n

Rogue trading bots<\/h2>\n
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Speculation also mounted about the possibility of rogue Bitcoin<\/span> trading<\/span> bots being used to drive up the price<\/span>.<\/p>\n

Traders could have easily set up bots<\/span> to monitor online conversations<\/span> for certain Bitcoin-related keywords that\u00a0may indicate a potential market<\/span> shift. Bots<\/span> would then\u00a0placeorders in anticipation of Bitcoin<\/span>\u2018s price<\/span> moving upwards.<\/p>\n

It\u2019s worth noting, though, that botsdo have limitations and in this instance it\u2019s possible that the creators may not have accounted for the possibility of fake news<\/span> or an April\u2019s Fools joke.<\/p>\n

\u201cIt\u2019s about getting there first. In this instance a trading bot cannot tell an April Fool\u2019s from a real thing,\u201d George McDonaugh, chief executive and co-founder<\/span> of blockchain investment firm KR1, told\u00a0The Independent<\/a>.\u00a0\u201cSo if you have a system in place to recognise the words<\/span> \u2018ETF<\/span>\u2018 and \u2018approved\u2019 to immediately trigger large scale<\/span> buys, then theoretically this could lead to a big move.\u201d<\/p>\n

Bitcoin halving<\/h2>\n

Some experts argue the price jump could be attributed<\/a> to Bitcoin\u2019s upcoming \u2018halvening,\u2019<\/a>\u00a0an event which will see the cryptocurrency\u2018s mining rewards slashed in half.<\/p>\n

A halving is a scheduled event that typically takes place every four years. The process was built into the Bitcoin network in a bid to control inflation, while also creating scarcity around the asset.<\/p>\n

As previously reported by Hard Fork,\u00a0the price didn\u2019t really move<\/a> during the last halvening. But, some attribute the 50 percent price\u00a0increase (from $430 to $650) in the three months prior to the event, but there\u2019s little evidence to prove plausible causation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n Published April 5, 2019 \u2014 13:22 UTC\n <\/p>\n<\/p><\/div>\n