1 CommentHere’s what happened this week in Bitcoin in 99 seconds.
Professional crypto traders suggested that this week’s dramatic price rise was a result of a major short squeeze in a low liquidity environment. A major Bitcoin buy order was split between at least three major exchanges, and the resulting upwards price pressure led to $500 million in desperate short-covering occurring within an hour on BitMEX.
As usually happens when Bitcoin price news is trending, search volume is exploding. Google Trends reveal that search interest for the keyword “Bitcoin” is at its highest level since last November. Meanwhile, China’s major search engine, Baidu, reported that “Bitcoin” was its fastest-rising search term.
The US Security and Exchange Commission released regulatory guidance to help clarify which crypto offerings constitute a security, and thus fall under existing securities laws. Although the ICO mania has ended, any project issuing tokens to US citizens should now have much greater regulatory clarity.
And finally, the World Economic Forum issued a report that over 40 central banks are exploring blockchain technology, some with a view to creating their own fiatcoins. A former under-secretary -general of the UN, called for a global currency based on the IMF’s SDR instrument.
That’s what happened this week in Bitcoin. See you next week.
So actually there was no reason at all for the rise. Sombody just cornered the market.
That should have alarmed people about the risks of this market.
Even more so 40 banks are starting to build their own competing digi-coins.
So the price of the bitcoin rose sharply while there was bad news for the bitcoin.
How fucked up can the wolrd become when thes are the price mechanisms behind its future coins.
No way I am buying bitcoins now, since everybody can see that the price must and will come down sharply within max. 8 months but more likely directly after the summer holidays. Would be better if it happened earlier, because that would at least show that part of the market is still able to come to their sences by themselves. Instead of beiing lead by other factors than reason.