The price of bitcoin surged 17% on Tuesday and touched $5,000. It’s the highest price since November 2018.
Rival coins Ethereum, XRP and Litecoin also jumped. The market value of all cryptocurrencies rose more than $15 billion in less than 90 minutes on Tuesday, according to data from CoinMarketCap. “I believe bitcoin will now move higher over the next few weeks and months, making steady gains for investors. As the largest cryptocurrency by market cap, this will have a positive impact on prices in the wider crypto sector,” Nigel Green, CEO of deVere Group, a U.K. consulting firm affirmed.
Criptocurrency market (demonstrative image)
Market participants say big buy orders in Bitcoin can often lead to outsized moves. “The Bitcoin market and crypto market in general continues to be small relative to the rest of the markets, and emotional,” said Jehan Chu, managing partner at blockchain investment and advisory firm Kenetic Capital. The extreme volatility is also one reason why the virtual currency has failed to catch on as a global medium of exchange, as intended by its creator. The reasons behind the price increase, as is often the case with Bitcoin, are hard to discern.