Bitcoin (BTC) and crypto markets have been on fire over the past twelve hours or so. A $55 billion cash injection has lifted them out of the doldrums in one of the largest pumps in recent history. Crypto Twitter is rejoicing the move which has been largely down to the comments of one powerful man.
Bitcoin Price Surges 40+%
This time yesterday bitcoin price was lulling around $7,450, down around 9% on the week. A stack of bearish technical indicators had built up foretelling more doom and gloom for the king of crypto. Then the Chinese President made a very bullish statement on the technology that BTC is built upon. That sent bitcoin surging back into five figures.
According to Tradingview.com BTC topped out at just over $10,300 which equates to an intraday gain of around 38%. It has since pulled back during Asian trading and is currently settled at 00 which is still a gain of epic proportions.
Trader and analyst Alex Kruger said it was the fourth-largest gain in history and a monumental move that tops even those in late 2017.
4th largest gain in history and largest since May/10/2011 (if comparing against daily returns).
15th largest two-day gain in history, Nov/18/2013.
$BTC has moved +42% today
– 4th largest gain in history and largest since May/10/2011 (if comparing against daily returns).
– 15th largest two-day gain in history, Nov/18/2013.
Thank you China.
President Xi is the true Crypto Dad.
— Alex Kruger (@krugermacro) October 26, 2019
With prices back at September levels, there is renewed hope that the downtrend has been reversed and the rally which began earlier this year can resume.
Three Reasons For Bitcoin Surge
Aside from President Xi Jinping stating “We must take the blockchain as an important breakthrough for independent innovation of core technologies,” there have been a couple of other factors driving momentum for the move.
As noted by Director at VanEck, Gabor Gurbacs, the CME futures expired yesterday and the arrest of the Crypto Capital CEO may be a good result for exchanges getting some of their lost funds back.
3 reasons why #Bitcoin surged today:
> CME Bitcoin futures expired today (4PM London time, last Friday of the month).
> President Xi Jinping supports blockchain in China.
> Crypto Capital CEO arrested. Exchanges, such as Bitfinex, may get some of the seized 850 million back.
— Gabor Gurbacs (@gaborgurbacs) October 25, 2019
Add to this the recent performance of Bakkt which has just hit a record day for futures contracts and you actually have four reasons why bitcoin surged. The record level of over 1,100 BTC is a new high for Bakkt which also announced that it would be launching Bitcoin options on December 9, 2019.
• Today's volume so far: 1131 BTC
• Last traded price: $8,622.50
• Trading day progress: 54% (if this continues: 100% equals to 2095 BTC)
— Bakkt Volume Bot (@BakktBot) October 25, 2019
Bitcoin has been the clear driver of momentum again for crypto markets. The massive move has resulted in $55 billion flowing back into the space which has pushed total market cap back over $250 billion.
Ethereum jumped 15% to close in on $190 while XRP finally made it over the $0.30 resistance barrier in a 9% climb. BCH and BSV cranked hard with 25% apiece as Litecoin closed in on $60 adding 18% itself. EOS, BNB, Tron, Monero, Huobi Token, Dash and NEO all made solid double-digit gains.
Has another major crypto rally begun? Add your thoughts below.
Images via Shutterstock, Twitter: @krugermacro, @gaborgurbacs