- Bitcoin recovered strongly into the end of the week.
- There are several factors that might have caused the stellar growth.
Once again, bitcoin demonstrated its unpredictable nature by growing above $8,600 handle in a matter of hours and eventually topped at $10,484 during early Asian hours on Saturday. The digital coin had been passing time in a tight range above $7,400 during early Friday hours. However, the market situation started to change when the European players joined the game and turned into a snowball ahead of the US hours.
The charts show that the sharp upside movement was accompanied by a strong growth of trading volumes, which is often considered as a signal of a trend reversal.
While the true fundamental reasons behind the stratospheric growth are buried in mystery, there are some factors that might have created a favorable situation for Friday developments.
It is all about BitMEX
The trading platform for leveraged cryptocurrency instruments BitMEX registered a massive short squeeze. The positions worth of $200 million were liquidated within the recent day and set the bull's ball rolling.
Notably, the recent price collapse might have also been caused by BitMEX positioning as a huge long position was liquidated on the platform right before the sell-off.
Bakkt inspired some volatility
Bakkt Volume Bot reported that the trading volumes on the platform reached a new all-time high at 770 contracts, which is 42% higher from the previous day. While the correlation between Bakkt volumes and Bitcoin price is vague, the signs of growing institutional interest might have supported the upside momentum.
Read also: Bakkt trading volumes hit all-time high as Bitcoin collapsed
Tether is involved
Notably, Tether Treasury has recently minted new coins worth of $16 million on the TRON blockchain. Traders believe that a large number of new coins injected in the system tp be converted into other cryptocurrencies, which is a clear bullish signal.
A large number of new USDT being minted is often taken as a bullish sign by traders and market analysts since it can be assumed that these tethers will enter the market to be exchanged for cryptocurrencies.
At the time of writing, BTC/USD is changing hands at $9,600, up 27% on a day-to-day basis. The coin hit $10,484 high on Saturday before retreating to the current levels.
BTC/USD, one-hour chart
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.