Newsflash: Bitcoin Jumps Back to $3,900 Erasing Recent Losses

Bitcoin, the flagship cryptocurrency, has recently seen its price jump from a low of little under $3,700 to nearly $4,000 in about 30 minutes. What’s behind the cryptocurrency’s surge is currently unclear, but it is now at a high it hadn't seen since December 25.

According to CryptoCompare data, in the last 30 minutes the cryptocurrency has seen massive green candles that helped it recover from what was so far being a negative day to a day in which it’s already by 3%.

Bitcoin's price jumped to $3,900 out of the blue

The cryptocurrency started off by dropping from the $3,800 to about $3,650 in the last 24-hour period, but has since recovered to test the $4,000 mark, before its price came back down to the $3,900 mark.

While it’s unclear why the sudden jump, it’s worth noting development and adoption have been growing. As CryptoGlobe covered, its layer-two scaling solution, the Lightning Network (LN), has seen its mainnet capacity hit a 500 BTC capacity less than one year after being launched.

The number of cryptocurrency ATMs has also doubled to over 4,000 this year. According to available data, an average of 6 machines were installed per day, most of them in the United States.

On social media users are still trying to wrap their heads around the surge. Some, on the other hand, appear to be focusing on the cryptocurrency’s fundamentals.

As expected, most other top cryptocurrencies have also seen their trends reverse and have started surging. Notably most are currently outperforming bitcoin, as EOS, XRP, and TRX are all up nearly 4% in the last 24-hour period.

Ethereum’s ether, which has been recovering from a low of little over $80, is now trading at $134.4, after rising 7.3%. Bitcoin Cash, which earlier today was down by nearly 10%, has made a significant recovery and is currently up 5.4% to $171.8.

Litecoin, a cryptocurrency created as the silver to bitcoin’s gold, rose 7.8% to $32, while privacy-centric cryptocurrencies Zcash and monero rose 4.7% and 8.6% to trade at $62.7 and $51.3 respectively.

Bitcoin’s Price Surges Nearly 10% to Surpass $8,000 as Crypto Market Adds $20 Billion

The price of bitcoin, the flagship cryptocurrency, has recently surpassed the $8,000 mark in a move some believe is extremely bullish and could help it go up to $20,000. What’s behind the rise is unclear, although a counter trading indicator pointed towards it.

At press time, BTC is trading at $8,055 after rising 10% in the last 24-hour period, according to CryptoCompare data. The flagship cryptocurrency’s market cap is now of $142 billion, and its recovery came merely days after it had a $1,000 ‘flash crash’ caused by a 5,000 BTC sell order.

Bitcoin's price performance in the last 24-hour period

It’s currently unclear what’s behind the cryptocurrency’s rise, although some have pointed out tensions between the United States and China may be helping, as bitcoinj’s price has been moving up when trading volumes are higher on Asian exchanges.

The U.S. recently hiked tariffs on $200 billion worth of Chinese goods, with China retaliating with higher levies on billions of dollars worth of U.S. products. These developments severely affected the stock market, and could be seeing investors hedge with bitcoin and other cryptocurrencies.

Notably, some could have predicted BTC would surpass the $8,000 mark this weekend as CNBC’s Fast Money Twitter account recently posted a bearish tweet showing a head and shoulders pattern, which implied a drop was imminent.

In the cryptocurrency space CNBC’s tweets are seen as a counter trading indicator, as often bitcoin does the exact opposite of what the financial news outlet’s social media accounts predict will happen.

The cryptocurrency’s price rise also comes as search interest for it hits a 14-month high, according to Google Trends data. This means that search interest for BTC hasn’t been this high since February of last year, when it was trading between $8,000 and $11,000.

Mati Greenspan, a senior market analyst at eToro, has noted the cryptocurrency’s price performance is bullish, and that there could be “virtually no major levels of resistance until $20,000.”

Recently, the co-founder and CEO of digital asset exchange Gemini, Tyler Winklevoss, called bitcoin “gold 2.0.” Facebook has also shown it’s getting more serious about blockchain, cryptocurrencies, and payments, which could be heightening interest in the space.

Bob Iaccino, an experience fun manager and veteran trader, has earlier this week argued that the growth of BTC’s layer-two scaling solution, the Lightning Network (LN), could also be supporting the cryptocurrency’s rally.

Altcoins Follow Bitcoin’s Rally

Available data shows that most altcoins have followed the flagship cryptocurrency’s rally, with most being up well over 3% in the last 24-hour period. Top altcoins like Ethereum’s ether, litecoin, XRP, and Zcash are all up by over 7%, with ether rising nearly 10% to trade at $258.

Interestingly Bitcoin Cash, a cryptocurrency that has recently seen a hacker take advantage of an upgrade to get miners to mine empty blocks and that has seen a mining pool have over 51% of its hashrate for a brief period, has risen over 16% in the same period. BCH is currently trading at $415.

Dash and Cosmos are other cryptocurrencies that have risen over 10% in said period. Overall the rally has seen the crypto market add over $20 billion.