Last week, the cryptocurrency giant bitcoin surged without any signs of stopping soon. Precisely, the price of bitcoin had risen by more than 200% as the week ended. At the begging of this year, the price was around $3,500, and last week it stood just below $14,000.
But the big question has always been the reason for the bitcoin price surge. When it comes to such a scenario, various folks give their explanations. However, the most significant claims of it all have been; the interest showed by the biggest tech companies in bitcoin and crypto in general.
For instance, the likes of iPhone maker Apple and Facebook have already shown interest in crypto. Also, there has been some interest from Bakkt, a New York Stock Exchange-owner platform.
Furthermore, there’s a vague assumption of institutions having a high demand for bitcoin lately, which has gone a long way to even outpacing retail demand.
It looks like such reasons got the crypto fever back on track and strong. Why? We hear you ask. As before the current bitcoin price fall, we started comparing the crypto market state to that of 2017, when bitcoin hit its high of $20,000.
Binance CEO had a Different Look
As most associated bitcoin price rally with the institutional demand, Binance exchange CEO Changpeng Zhao affirmed the real reason was far from that demand.
CZ believes that the number of institutions stepping into the crypto industry is growing, but it hasn’t grown that much yet this year.
So, what was his reason then for the rally?
As per his prediction that he made last week, the extreme volatility could only be getting even worse. The reason is that, still, retail investors account for almost over 60% of the trading volume on Binance, which is similar to last year.
Moreover, margin trading could as well be having a say in the recent bitcoin rally as now investors have significant funds to speculate with. CZ projects that majority of folks will be flowing to use margin by the end of 2019, and with more trading volume, there’s potential higher volatility.
Now we’re looking forward to the next bitcoin halving which some suggest may cause some ‘supply shock’ in the current market. However, if that happens or not, only time will tell. Bitcoin price stands at $9,645 after going down by 7.91% in the last 24 hours.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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