Alex Krüger, a popular economist whose prime focus is on cryptocurrencies, has recently claimed that the price hike in Bitcoin is not driven by the retail buyer but by a bunch of large players who started buying the coins systematically. He also stated that the clues to it can be found in the volume, price action, funding, futures basis and term structure.
According to Krüger, there are a few factors that could have motivated these buyers to buy these Bitcoins in waves. Some of the possibilities he states in his tweet are Front Running Etrade or Ameritrade flows or Front Running news that the have gotten their hands on.
Front Running is the illegal practice of buying stocks; in this case, Bitcoins can be bought in advance based on news that is not publicly available. This puts these buyers on an edge, and they could leverage this knowledge to make decisions to either make profits or save themselves from losses. Since the information is not yet public, the transactions could be made before it can have an actual impact on the market.
Launching Crypto Platforms
As new crypto platforms, like Bakkt, are launched as soon as Bitcoin prices go up, these claims could find solidarity among the masses. As more of these platforms keep coming in, increasing the possibility of bringing more capital into the Bitcoin and crypto markets, the intentions of these actions may become a little clearer.
It can also lead to more people believing this to be true which can have serious implications on Bitcoin’s market as the retailers may start doubting the cryptocurrency and lose trust in its operations. There would be a call to make these things clear by all those who are trading in Bitcoin in general and had not had any idea about these things when they bought the token. If you want to buy or invest in Bitcoin to make profit from it then various of Bitcoin Robots available in market. These platform are focusing on to make good profit from Bitcoin. Check Bitcoin Bot Review for further more details on it.
Bitcoin’s Recent Breakthroughs
Bitcoin has been putting on momentum since the early days of this year and had seen its pace sped faster in the last month or so. News of Bitcoin leaving the bear market and showing Bullish trends made the news and people started feeling positive about the cryptocurrency again. Not just that, people started wondering if this is the start of a more stable crypto economy and if other cryptocurrencies would soon follow through.
There are no hard answers as of now, but if this turns out to be true, there’s no way of knowing how harsh the market could go from here. In an age where news spreads fast, people will be, in no time aware of these new breakthroughs and might start acting on it soon enough.