Never a dull moment in the crypto community as bitcoin has once again shown that it is highly volatile. The leading coin, which consolidated around the $8,000 region since late September and traded as low as $7,300 within the last three days, has taken a bullish reversal, racing up to as high as $10,350 (Bitstamp) within the previous 24 hours.
This came as a surprise to many as many ‘crypto analysts’ have predicted a Bitcoin Death Cross, which ought to dip the price further to $6,000 before a possible bull turn, but as usual, Bitcoin doesn’t care.
At the time of writing, BTC is trading around $9,400, indicating a 25% increase in the daily chart. This bolstered the rest of the crypto markets, pushing the total market cap beyond $250 billion.
While both day-traders and hodlers are excited about the Bitcoin uptrend, many are also curious about the reason caused the massive surge from $7,300 to $10,350 in just one day. Let’s examine some of the factors that might have affected the bitcoin price.
Anyone who has been in the crypto space long enough would agree that China has a vast influence on the crypto market. Dating back to 2013, when China CCTV aired Bitcoin for the first time, the cryptocurrency saw a short-term massive price movement, rising from $150 to an ATH of around $1,180 in the two months of November – December 2013.
Yesterday during the 18th Collective Study of the Political Bureau of the Central Committee, China’s President, Xi Jinping, expressed great support for the blockchain technology, urging that the country should increase its investments in the sector because of the benefits it offers.
This can also be a controversial act to the USA, following the Mark Zuckerberg attack at the Congress on last Thursday. Many relate the parabolic rise of 2019 to the introduction of Facebook’s Libra. Those also relate the latest price drop to $7,300 to the congressional hearing, which was not in favor of the Libra’s idea.
12 hours after the major “Xi Pump”
1. “Blockchain” headlined on People’s Daily print version today
2. Top Universities in China start “Blockchain” course offering overnight
3. Expect to see massive blockchain initiatives from local municipal soon
The ripple effect is strong pic.twitter.com/2E2Be6RHol
— Dovey Wan 🗝 🦖 (@DoveyWan) October 26, 2019
Bitcoin Whales Working On Weekends
For one thing, though, the crypto market is very unpredictive. While it makes sense to say the BTC price action was caused by the latest blockchain support from the Chinese President, history has shown that Bitcoin whales also affect the price movement. Some may think the big moves are caused only by them or are driven by them.
Because the majority is always wrong in trading, the whales would find the most unexpected moment and drive the market as they wish. Another evidence for that is the fact that all of this price action takes place during the weekend. Many traders are on vacation, the CME Bitcoin futures are off, so it’s a lot easier to move the markets.
What do those whales know? This tweet from Looposhi is everything but magic. Notice the date of the tweet. A driven market, someone?
BITCOIN BOTTOM 24 OCT 2019
— Looposhi (@22loops) January 4, 2019
The man behind the mask and Snowden
In regards to the Bitcoin whales or not, the most famous anonymous prediction popped up 4Chan during January 2019 as well, following an accurate forecast of the 2018 bear market’s bottom.
The anonymous prediction had become so famous, that Edward Snowden just tweeted about it. Two out of six predictions have been correct so far, $5300 in April and $9200 in July. The next forecast on the list is $16,000 by the end of October. With less than five days until the end of the month, following this huge day, anything might be possible to give him a 3 out of 3.
Interestingly, American journalist and whistleblower, Edward Snowden, today, tweeted the same anime profile image used by the anonymous guy on 4chan, thus raising a lot of questions. Is this a mere coincidence? Or does Snowden, who currently resides in Russia, knows something that we don’t? Has he been secretly following up with the anonymous 4chan predictions and the crypto industry in general?
As always, only time shall tell if bitcoin price will hit $16,000 in the next few days or if the first two correct predictions were lucky guesses.