Tuesday turned out to be an interesting day for the cryptocurrency market. Particularly because of Bitcoin’s massive spike that saw it rally above $10,000, mainly due to large accounts buying the cryptocurrency.
The price of the cryptocurrency experienced a sudden upsurge that pushed it to highs of around $10,340. The price stayed within those levels for a few hours before plummeting below $9,500, thus undoing the gains that were witnessed a few hours prior. Numerous exchanges registered a spike in Bitcoin trading volumes during the sessions. A Bitfinex executive confirmed that there were major Bitcoin purchases on the exchange.
“We’ve seen some big buys on Finex since the spike,” stated Paolo Ardoino, Bitfinex’s Chief Technical Officer.
Ardoino also noted that the exchange continued to witness Bitcoin buy volumes even after the price surpassed the $10,000 price level. He even noted that there were two major purchases at $10,145 and $10,170 price levels, and each purchase was for $1.4 million. However, the price recovery below $10,000 restores the uncertainty about Bitcoin’s performance moving forward.
Adam Back from Blockstream believes that Bitcoin will reach $300,000
Black, who happens to be a Bitcoin holder, is confident that the cryptocurrency will continue to gain value in the future. He is convinced that the price of one Bitcoin will reach $300,000 in the next five years. There is currently some speculation that coronavirus’s current economic downturn will lead to more money printing. This may end up causing inflation and other economic problems.
In such cases, people might rush to buy cryptocurrencies, including Bitcoin, to protect their wealth. This might drive up the price of the cryptocurrency. There has also been talk about institutional buyers coming in with the same goal of persevering their wealth. This would provide a significant boost to the price of Bitcoin.
Bitcoin’s performance on Tuesday was an indicator that the cryptocurrency is still heavily influenced by speculation. The question that is lingering on many Bitcoin fans is whether the cryptocurrency will experience another massive rally. However, Bitcoin has proved quite unpredictable in the past, which means that it accurately determines the price direction.