Chinese New Year.
Wall Street bonus checks.
Tax refund season.
One person buying $100 million in BTC.
Media and amateur crypto pundits are speculating on causes for the huge boom in Bitcoin’s price today as it surged past the $5000 USD mark and finally confirmed a break from the long-winded downtrend of the past half year or so.
One of the more plausible explanations for the bullish explosion was published by Reuters, suggesting that a single individual’s bulk order of BTC across three exchanges, totaling a value of $100 million, got the ball rolling. This would surely have been enough to cause some significant FOMO amongst the green-candle starved crypto-enthusiast population, and might have even caught the attention of a few casual retail buyers who had been waiting for a positive price push before jumping back in.
Some are attributing the exuberance to a rumored approval of a Bitcoin ETF that turned out to be nothing more than an April Fool’s joke. This seems a little less likely as the majority of crypto enthusiasts remained on high alert against false claims due to the silly tradition; an attitude that would serve many well to maintain, long past the first of April.
Elon Musk announced his love for cryptocurrency, declaring his favorite to be Dogecoin. He was soon thereafter appointed CEO of Dogecoin and promptly resigned from the position. At this stage, his Twitter handle describes him as the “Former CEO of Dogecoin”. Surely, this would have contributed to the crypto price rush?
The simple truth of the matter is, when more people buy Bitcoin, more people want to buy Bitcoin. When more people sell Bitcoin, more people want to sell it. It’s human nature. People want things that are seen to have value and don’t want things that are seen to lack value. The scarcity of Bitcoin causes this fluctuation in demand to push values higher when the market decides it’s time to buy and to do the opposite when the market decides it’s time to sell.
It’s a truly global free market, unlike any other — whales, manipulators, retail buyers, and all — which is exactly why Bitcoin has the potential to have more value than any centrally-controlled currency.
Just not yet.