On April 2, 2019, Bitcoin prices surged massively, with the prices going up by 24% in 24 hours. This surge caught everyone by surprise and people started to look for a reason behind the pump.
There were a lot of people with speculative theories about the pump. These are the top 3 theories [in no particular order] that explain the reason for the pump.
Mystery buyer with an ever more mysterious order
According to Reuters, the sudden jump in Bitcoin’s price was caused by an order worth $100 million. These orders were said to have been spread across different exchanges in the U.S. like Coinbase, Kraken, etc. This was speculated by Oliver von Landsberg-Sadie, the Chief Executive of the cryptocurrency firm, BCB Group.
“There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC… If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.”
April Fools’ Day Joke
Bloomberg reported that the sudden surge in the price of Bitcoin was caused due to an April Fools’ Day joke. The joke was that SEC had approved the Bitcoin ETF, which according to Bloomberg, triggered a frenzy of buyers with FOMO.
“One theory is that a widely circulated spoof article stating the U.S. Securities and Exchange Commission had approved two Bitcoin exchange-traded funds drove prices higher, while others said it was caused by unwinding of short positions.”
According to Mati Greenspan, a senior analyst at eToro, the pump originated in the Asian markets at around 4:30 UTC, when the US market was asleep. He stated,
“Judging by the timing, it looks like the pump originated in Japan or South Korea. New York is asleep, Europe is just opening their eyes. This is the Asian trading session.”
Bitcoin pumped by a massive 24%, causing its price to shatter 3 important resistance points between $4,000 and $4,400.
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