Bitcoin has breached the $8,000 mark for the first time since last July
After a lull, Bitcoin (BTC) has finally taken off again. The cryptocurrency climbed to $8,297 on May 14, surging a whopping 63% within a month, and it’s nearly doubled in the last six weeks.
However, prices have cooled down since then, and it’s currently trading at $7,977.7. The astronomical rise is reminiscent of the surge in cryptocurrencies in 2017.
Most of the time, no one can really explain why cryptocurrencies fall or rise. The surge in the extremely speculative cryptocurrency this time around may have been the result of the increasing trade tensions between the United States and China.
Bitcoin may have risen due to “systematic buying”
According to researcher Alex Krüger, Bitcoin prices were driven up by “systematic buying” by a “handful of large players.” Such a huge move in cryptos after a lull may also have whetted investors’ appetites for a quick buck. However, people will likely be wary this time, as it hasn’t been that long since Bitcoin prices started tanking as quickly as they rose in December 2017.
The markets continue to cool, and investors with high risk-appetites could be looking for investments other than regular safe havens gold and Treasuries.