Bitcoin price swing continues
This week has been no less than a surprise for Bitcoin enthusiasts as Bitcoin price hit a new record.The bigger news is that the value tumbled and hit it the top back again. This twist began with $12,000 on Tuesday night, crossing $ 15,000 on thursday , nearly hitting $19,000 before finally dropping down to $14,000 this Friday morning.
Experts believe that such spikes are just “one-time event”. Moreover, they won’t be repeated in the coming week or with any other currency. As reported by CNBC, Chainalysis CEO, Michael Gronager says
“The first time a new thing is launched, and then it becomes extremely important for the reaction of the market. Next time, so let’s say the next future being launched, [you’ll] probably not see a big reaction there,”
Walter Zimmermann, technical analyst at ICAP TA believes that these Bitcoin price swings aren’t something very common and people are mistaking it as something ordinary. He says “People are looking at a video game as a regular market. And it’s clearly not, otherwise, it wouldn’t be where it is already,” “It’s beyond abnormal, it’s unprecedented. Every other commodity has natural sellers.” - He added.
There are different explanations being put forward to decode the cause underlying this Bitcoin price rally. The primary theory that is on heat the most is concerned with the launch of Bitcoin futures. It is believed that Bitcoin will benefit from the first BTC future products that are on their way. The CBOE Global Markets and CME Group are set to launch new futures contracts on December 10 and 17. This will open opportunities for big and small businesses to trade in Bitcoin, thereby increasing the value of this cryptocurrency.
Matthew Unger, the CEO and Founder of iCOmplyICO agrees with this theory as he says:
“The current price isn’t truly driven by demand. When CME Group went live with Bitcoin futures we saw a sharp increase in demand and an increased number of users in the network,” “Now, some institutional major players are flooding the network with new cash and creating what appears to be market manipulation. Now that Bitcoin futures are available it is easy to buy into futures market first and then create a massive number of buys or sells of Bitcoin to ensure the price swings in favor of your futures contract.”-he further added.
Bitcoin’s price surge has undoubtedly come as a surprise and a shock to the traders.
However, the show is on as it is yet to be revealed if all these chaos is merely a bubble or actually the game changer of the cryptocurrency world.