Are you involved in the bitcoin movement? If so, you must be pleased that bitcoin jumped suddenly on Tuesday after months of relatively low volatility. This asset was once known for its wild price swings.
The price of the world’s largest cryptocurrency bounced 14 percent higher to about $4,700, according to CoinDesk data. It reached its highest level since late November.
Bitcoin also briefly touched the $5,000 mark on the Luxembourg-based Bitstamp exchange. The digital asset has added over $14 billion to its market value in the last 24 hours, according to CoinMarketCap.
It is not immediately clear was the reason for the surprising jump in value. Other virtual currencies were also higher, with ether and XRP both rising around 6 percent.
Some experts attributed the price jump to a breakout from a closely-watched resistance level of $4,200. Bitcoin had been hovering around the $4,000 mark for a number of months.
“Bitcoin’s break above $4,200 this morning was critical, as the market had been watching that level for a while,” Mati Greenspan, senior market analyst at trading platform eToro, released to the media. “No doubt some entry orders and stop losses were grouped right above.” What happened is that certain algorithmic trades had kicked in after it reached this higher level.
This swing comes after a massive slump for the cryptocurrency market last year. Bitcoin fell over 76 percent in 2018, and is still well below an all-time high near $20,000 it reached in December 2017.
“Bitcoin has been trading range bound for a while now and shaking off some of the negative sentiment that it accrued in 2018,” Charles Hayter, chief executive of digital currency comparison firm CryptoCompare, told CNBC.
“This trigger was through volume-led price action driving the price and triggering algos on a breakout.”
How might this spike affect you? Are you involved with this cryptocurrency? We look foward to seeing your comments in the section below this article.