Bitcoin prices jumps nearly 10% on higher volumes

The Bitcoin price spiked dramatically yesterday on a jump in volumes, pushing the price above $6,300.

The size of the move on a marked increase in volumes suggests buying by relatively few heavyweight market participants, but why now?

Mohamed El Erian the chief economist at German investment and insurance giant Allianz called a bottom in the $5,000s for bitcoin. He did not give specific reasons other than expecting the true-believers to start consolidating the price around that level.

The last time the price was in the 5,000s was in November last year which marked the beginning of the huge run-up in bitcoin and that of other crypto prices.

Crypto trader Brian Kelly also expects miners to start supporting the price at or below the $5,900 level. He calculates that 5.9k is break even for many miners, although the crucial factor of electricity cost would need to be taken into account.

Another element that could be supportive of prices are renewed murmurings about the possibility of US financial authorities approving a bitcoin ETF coming to market from VanEck.

The strength of the Friday bounce also follows an article on popular UK mainstream investment site interactive investor before the spike, which argued that the bulls might be about to come out to play. The site has 900,000 unique views a month, attracting many high net worth users.

Further supportive news comes from voting starting on the Tron blockchain to elect the Super Representatives who will validate network transactions and the $1.4 billion Vechain network has also just mined its first block.

That news, plus the EOS launch, despite its problems, is evidence of third-gen blockchains starting to move nearer to hosting  decentralised apps. When that starts to happen, investing in blockchain projects becomes less speculative, with investors able to start accessing real network and app usage and now other fundamentals for guidance to adoption success.

 

About the Author

Pete Winston
I live and breathe crypto and have a small holding (BTC, ETH, EOS and XLM) that isn’t life-changing, so move along hackers! You can email me here: petewinston@coinintelnews.com

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