Bitcoin has found itself in the throes of a firmly established bull market over the past several months, surging from its 2018 lows of $3,400 to highs last night of $13,000, which is only a stone’s throw away from BTC’s previously established all-time-highs of roughly $20,000.
Importantly, the aggregated crypto markets have not incurred the same upwards momentum that Bitcoin has and are mostly remaining stagnant around their current prices. Nevertheless, investors are now searching for answers as to why Bitcoin is surging, and one economist is now offering an explanation.
Bitcoin Plows Past Resistance Levels as Bulls Destroy Bears
At the time of writing, Bitcoin is trading up nearly 18% at its current price of $13,400 and is up significantly from its 24-hour lows of $11,300 that were set yesterday.
BTC’s latest move upwards marks a significant continuation of the massive influx of upwards momentum that the cryptocurrency incurred after it moved above $10,000, and appears to confirm that it is currently in a firm uptrend that will likely extend significantly in the near-future.
Now, many investors have been left scratching their heads as to what could have sparked this momentum after a dark year filled with technical damage and consistent losses, and Alex Krüger, a popular economist who focuses primarily on cryptocurrencies, believes the reason is actually quite simple.
“The cause is simple: aggressive buyers crossed the bid-ask spread and overpowered both passive and aggressive sellers. Based on price action, there were aggressive buyers with deep pockets in action last night. There was no specific trigger known to anyone outside of them,” he explained in a recent tweet.
The cause is simple: aggressive buyers crossed the bid-ask spread and overpowered both passive and aggressive sellers. Based on price action, there were aggressive buyers with deep pockets in action last night. There was no specific trigger known to anyone outside of them.
— Alex Krüger (@krugermacro) June 26, 2019
Analyst: Extremely Bullish Factors May Have Helped Fuel Recent BTC Rally
Furthermore, although aggressive buyers may be the suspect behind the recent parabolic Bitcoin rally, a plethora of bullish factors may have sparked this upwards trend, which includes the entrance of many institutional buyers into the markets.
“No specific trigger $BTC last night. Just very large buyers. There has been a myriad of extremely bullish factors in place as of late, which include: New trading venues => parties front-running Fidelity/Bakkt/Ameritrade/E-Trade/LedgerX flows – Libra – Various macro narratives,” Krüger further noted.
No specific trigger $BTC last night. Just very large buyers. There has been a myriad of extremely bullish factors in place as of late, which include:
– New trading venues => parties front-running Fidelity/Bakkt/Ameritrade/E-Trade/LedgerX flows
– Libra
– Various macro narratives— Alex Krüger (@krugermacro) June 26, 2019
So, when adding together a handful of large and aggressive buyers – often referred to as “whales” – with several incredibly bullish fundamental changes in the markets, it becomes increasingly clear as to why Bitcoin is currently going parabolic.
Importantly, bullish trends like this are typically perpetuated once retail investors begin flooding the markets again, so it is highly likely that the upwards parabola will continue on after a torrent of Bitcoin-related news from mainstream media outlets begins dominating the news cycle.
Featured image from Shutterstock.