Analysts’ View on Bitcoin Price Spike Above $7k

News / 03.01.2020

On the 2nd of January 2020, the Bitcoin price rose by 3.5% to 6850. Nevertheless, it staged a robust retracement and gained $ 400, representing a 6% upsurge to $7250, before returning to $7200. Bitcoin is trying to stabilize its level at $7.2k since that time.

A crypto research and data market known as Skew Markets noted the liquidation of a minimum of $16 million worth of short positions on BitMEX in the colossal upsurge. Bitcoin’s surge caught traders off-guard, as analysts wondered why the price rose by 6% within minutes.

Matthew Graham’s View on The Bitcoin Upsurge

After Bitcoin’s upsurge, Matthew Graham of Sino Global Capital tweeted asking whether the digital currency movement is a reaction to geopolitical risk. Graham’s tweet refers to a report released some hours ago that the US president ordered attacks on Iran’s army leaders.

The attacks led to the loss of critical Iranian men; hence, global markets are going comparatively berserk. For instance, crude oil’s price increased by 3 % while the gold’s price suddenly rose by $10 within minutes, following reports regarding the attack.

Analysts say that Bitcoin is becoming a macro asset. They also think that the potential of increasing conflict between the US and Iran is influencing capital towards Bitcoin and other alternative investments that investors see as safe-havens.

Alex Kruger’s Contrary View

One of the renowned crypto analysts, Alex Kruger, does not believe in this thesis. Kruger tweeted following an upsurge, highlighting the likelihood of the hypothesis being a false narrative because Bitcoin’s movement came hours following other assets’ move.

Based on data concerning Bitcoin futures, as earlier mentioned, this incline over $7000 could be a short squeeze in these times of low volatility.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.