The latest Bitcoin [BTC] price pump pushing the coin over the $5,000-mark had led analysts to point in a host of directions for the true cause. From the increase in adoption to a bottom-out, and even an April Fools’ joke, many sources were indicated. Now, a recent report from Flipside Crypto has stated that dormant wallets waking up could have been the reason for the massive rise.
As reported by Bloomberg, the study by the market intelligence firm Flipside stated that idle BTC wallets becoming active could have been the reason for the high. Since March 15, a mere 17 days since the price rally, dormant wallets have decreased by over 40 percent.
Given these figures, Eric Stone, the co-founder and head of data at Flipside, stated that more people were “warming up to the idea of buying Bitcoin”.
“If you are a crypto optimist, that’s good news.”
Bitcoin whales-induced price movement is often the cause of a massive, unexpected gain or fall for the top cryptocurrency, stated Stone, citing the case of the 2018 Bitcoin price drop. However, the cause of whale wallets leading Bitcoin to surge by 15 percent and managing to continue its rise two days after the rise does not seem to hold.
Stone added that the movement did not seem to emanate from one individual source, leading to the whale-wallet induced rally to fall short of conviction. He added that smaller wallets held by retail investors were also “waking up”.
While many pessimists touting the volatility of Bitcoin as its inability to cement itself as a mainstream financial asset, Flipside’s CEO Dave Blatter takes a different view of the matter. He claims that the price rally will add to Bitcoin’s objective of becoming a mode of payment in the future.
“This probably signifies a change in perception or confidence in this asset class.”
Another prominent reason which was tabled as the source behind the 15 percent gain in BTC’s price was an automatic order. The BCB Group’s Oliver con Landsberg-Sadie stated that a $100 million order spread across Coinbase, Kraken, and Bitstamp caused the massive price rally.
Regardless of the reason, Bitcoin has managed to stay afloat above $5,000, leading many to believe that the pump worked. Additionally, during the initial phase of the rise, Bitcoin’s market dominance, which was struggling at just over 50 percent rose to 52.4 percent, affirming its place as the king coin.
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