Crypto market capitalization jumped $14B in a matter of hours, pushed by the holy trinity of speculation, manipulation, and technicals
|- Cryptocurrency market is growing strongly.
- Bitcoin jumps as high as $7,200 amid speculative interest.
- Technical factors and Tether sell-off may be behind the move.
Cryptocurrency bulls came out of the blue and took the revenge this Monday morning as all major coins recovered losses of the previous week amid a strong rally that disrupted the lull of the Asian session. The market capitalization gained over $14B in a matter of hours, leaving traders, experts and analysts guessing what might have triggered the movement.
Three possible factors might have played their role in engineering the bullish assault across the cryptocurrency market.
The first one is technical.
Bitcoin reached the critical threshold around $6,000 with lots of protective orders located on the approach to this strong support. As the bearish momentum faded away, new buyers flooded the market and pushed the price higher, while a sustainable break above $6,300 extended the upside.
The second one is speculative.
A sharp movement created favorable conditions for arbitrage as Bitcoin price varied and different cryptocurrency exchanges. Thus the highest level was registered at Bitfinex, where BTC/USD traded at $7,200 handle. Arbitrage has attracted speculators to the market, pushing the price even higher.
The third one is manipulative.
The last but not the least one is related to Tether, USD-backed stable coin, which is the only digital asset out of top-10 that is being sold-out this morning. This usually happens when traders aim to buy other coins.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.