Fri. Jan 22nd, 2021

Bitcoin soars to highest level since November

bitcoin surgeBitcoin surged 20% and briefly touched $5 000, its highest price in the past five months.

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The reason for the spike remains unclear. However, some experts speculate that it may be related to a single buyer who used a computer algorithm to trigger the purchase of $100m worth of Bitcoin.

Oliver von Landsberg-Sadie, founder and CEO of cryptocurrency brokerage firm BCB Group, confirmed that there had been a single order for around 20 000 BTC. He adds:

“If you look at the volumes on each of those three exchanges – there were in-concert, synchronised, units of volume of around 7 000 BTC in an hour.”

The new surge pushes Bitcoin closer to that $5 000-mark after it remained stagnant between $3 500 and %3 800 since January. According to Time:

“Even after paring some of its gain, Bitcoin was trading up 16% at $4,773.91 as of 6:38 a.m. in New York. Rival coins Ether, XRP and Litecoin also jumped, as did cryptocurrency-linked stocks including Remixpoint Inc. and CMC Markets Plc.”

Read – South Africa’s very own cryptocurrency, Safcoin, opens its second call centre

Bloomberg reports that the surge may have been due an April Fool’s joke. A recent spoof article stated that the U.S Securities and Exchange Commission approved two Bitcoin exchange-traded funds, which caused prices to skyrocket.

Watch: Andrew Ross Sorkin explaining the surge

Experts warn not to get too excited just yet. “The bounce is not enough to reset crypto winter,” says Julien Auchecorne, London-based chief operating Officer at XBTO International. He adds:

“We have no major new products and last year’s big breakthroughs are still in their nascent stage. Sure it was a joke, but it showed that the hope is for inflows and institutional infrastructure.”

Positive outlook for the future

If Bitcoin can maintain a $4 000 level for the rest of the week, it may move steadily higher over the coming months. It’s is speculated that Bitcoin may even reach the $6 000 mark by June.

In relation to the South African market, one Bitcoin is valued at R67 732,51 at the time of publishing.

Read – Tax law change may be the death knell for SA’s crypto startups, expert says

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