Everybody who believed Bitcoin was not dead can be happy right now. In a totally unexpected move, the Bitcoin value increased 10% quickly. In a sudden move around 2 p. m. on New York time, Coinbase saw the value of the token emerge 10% and start to be traded at $7,395.
Why Has The Price of Bitcoin Spiked?
Volatility is considered normal in the cryptocurrency market, so jumps like this one are to be expected. However, this one is important Bitcoin was facing a massive resistance on the value of $6,800 USD recently. For three weeks, the token was somewhat stable at this price and some people were starting to believe that Bitcoin could only go down from there, which did not happen.
Specialists believe that the price rise happened due to technical levels of Bitcoin. The CEO of BKCM, has told the media that the resistance was strong for three weeks but that people were “shorting against that and they just got their face ripped off”.
This week, BlackRock has confirmed that it was creating a working group to look into cryptos and blockchain technology and many other institutional and Wall Street investors seem to be more interested in cryptocurrencies lately.
At the moment of this report, Bitcoin has a market cap of $125 billion USD.