Newsflash: Bitcoin Leaps Over $200 to Surpass $4,100 for the First Time in Two Weeks

Bitcoin, the flagship cryptocurrency, has recently seen its price jump well over $200 in about 15 minutes to cross the $4,100 mark, something it hadn’t done since December 24, a day in which it saw its price dip from the $4,300 mark.

According to CryptoCompare data BTC is currently trading at $4,120 after seeing a $200 leap in a short amount of time, that helped it surge from the $3,880 mark in which it started the day. The leap has added billions to its market cap, as it’s currently up over 6.5% in the last 24-hour period.

Bitcoin has jump jumped over the $4,100 mark

What’s behind the flagship cryptocurrency’s sudden rise is, at press time, unclear. On social media various users have only so far started celebrating the move, and most suspect a whale has decided to stock up on BTC.

The surge comes shortly after legendary investor Gary Shilling revealed he’s staying away from BTC over its lack of “transparency,” and after it was revealed that nearly 80% of cryptocurrency investors are still net-invested in the flagship cryptocurrency.

It also notably comes during an ad campaign made by the Gemini Trust Company, a popular cryptocurrency exchange, that calls for cryptocurrency regulations and argues there needs to be a “bridge” between the traditional financial system and the cryptocurrency space. Notably Weiss Ratings has recently noted that bitcoin will “rise up and head for new all-time highs” as well.

Most top altcoins have seemingly followed BTC’s lead and are also on the move. The MVIS CryptoCompare Digital Assets 100 Index, a market cap-weighted index that tracks the top 100 cryptos, is currently up by over 5% in the last 24-hour period.

It may, however, be too early to celebrate. Some analysts on social media have already noted that BTC’s low liquidity may have helped the move be so dramatic, and at press time the price appears to be receding.

Speaking to CryptoGlobe this week Mati Greenspan, a senior market analyst at eToro, noted that if we do go back down again, the $3,000 mark represents a “critical support.” On Twitter, he noted that if BTC keeps moving up, it’ll face resistance at $5,000.

When asked whether he believes we’ll be moving up to test the $5,000 mark in the near future or whether the cryptocurrency is going to drop to $3,000 again, he noted that “we’ll see.” As to whether the pump was aided by low liquidity, he stated:

Bitcoin often spikes on low liquidity. What looks significant here is that the jump took us above the psychological barrier of $4,000, which Bitcoin has been testing since Christmas.

This week, litecoin (LTC) has also seen considerable gains. As covered, the cryptocurrency has been rising after hitting the 100 LTC node count on the Lightning Network (LN). At press time, it’s trading at $40 after rising 12% in the last 24-hour period.

This article has been updated to add Mati Greenspan's comments.

Billionaire Tim Draper: Bitcoin Is 'the Currency of the Future'

  • Tim Draper, a billionaire venture capital investor, has recommend taking a long-term approach to investing in Bitcoin (BTC).
  • The Harvard business school graduate believes Bitcoin is the "currency of the future" and that the value of the USD (and other fiat currencies) will gradually depreciate - as people lose interest and confidence in them.

Billionaire venture capitalist Tim Draper recently made a rare appearance on a Facebook live Q&A session during which he shared his views and insights regarding current traditional financial markets and also offered some suggestions on how to sensibly invest in cryptocurrencies.

Draper, an electrical engineering graduate from Stanford University, is well-known for purchasing 29,656 bitcoins (BTC) in 2014, for $18 million. from the US Marshall Service auctions. Notably, 144,336 bitcoins (in total) had been seized at that time after the US Federal Bureau of Investigation (FBI) took down online black market Silk Road.

Bitcoin Will Create "Much More Fluid Markets"

In his recently conducted Facebook live session, the legendary investor and business tycoon seemed to express more confidence in Bitcoin’s long-term performance than on the world’s most dominant currency, the USD. He remarked:

What it is (Bitcoin) is the future of currency and the currency is going to [remain] decentralized and open and you’re going to end up with a much more fluid, dynamic currency if you own Bitcoin, than if you own [US] dollars.

In mid-September 2018, Draper compared the growth and adoption of the internet to that of the current development of cryptocurrencies and blockchain technology. The Harvard business school graduate argued at the time that the combined market capitalization of the digital asset market would surge to around $80 trillion within the next 15 years.

Bitcoin Will Surge To $250,000 By 2022

This, as fiat currencies would gradually begin to lose their value and become practically worthless, Draper forecasted. Moreover, Draper believes bitcoin's price will skyrocket to $250,000 by 2022. In his most recent comments regarding Bitcoin’s potential, Draper noted that: “I never make bitcoin predictions in the short term because short term anything can happen.”

He added:

It (Bitcoin) will move up and down and if you’re investing in the short term you’re making a mistake. People can manipulate the price, it moves up, moves down depending on big customers coming in to buy or big owners coming in to sell.

Psychology of Investing

Going on to describe the psychology of the investing process, Draper remarked:

Sometimes Bitcoin is going to feel very valuable … and sometimes you’re going to feel like dollars are what you really want to hold on to. When you feel like dollars are what you really want to hold on to, you probably want to buy Bitcoin.

Draper, who’s notably the founder of Draper Associates, a Menlo Park, California-based, seed-stage VC firm founded in 1985, further explained that having a long-term investment strategy and approach towards Bitcoin could potentially yield a significant return-on-investment (ROI).