Bitcoin price increased sharply reaching over $5000 yesterday (2nd April 2019) which is a yearly high for bitcoin. According to Bloomberg, cryptocurrency investors should be aware of the sudden price increase and there is no logic behind turning bullish about bitcoin and other cryptocurrencies due to this.
Ignore the Bitcoin Surge:
According to Bloomberg, the bitcoin spike which is followed by other cryptocurrencies as well should be ignored. The article explained that the current market situation is the result of excitement amongst cryptocurrency enthusiasts. News outlets are giving their own explanations about the sudden price increase which includes an anonymous buyer who bought bitcoin worth $100 million using trading algorithms following an April Fool’s day publication made by a news outlet suggesting that the United States Securities and Exchange Commission has approved Bitcoin ETF applications of 2 firms.
Leonid Bershidsky, the Bloomberg author also took notice of the recent reports which suggest that cryptocurrency exchanges have been faking bitcoin trading volumes and people should be aware and ignore the current spike in the price of bitcoin.
Nothing to be bullish about:
According to a recent report by Bitwise, just $1.2 billion trading volume has been recorded in the last 24 hours in comparison to the data being showcased by CoinMarketCap which suggests it to be more than $20 billion (at the time of publication).
The Bloomberg writer also insisted that at the current time, there is no announcement regarding the adoption of cryptocurrencies or any such news which could drive the price of bitcoin and all the recent collaboration with the financial institutions are just tests. The adoption by small merchants does not have a direct impact on the price.
He also mentioned that the recent news in the cryptocurrency industry has all been about hackings and regulation and nothing else. In the end, he also mentioned about the market being driven by emotions and suggested not to take the sudden price increase seriously.