Bitcoin Enjoys a Strong Week as Value Soars

bitcoin money

Martin Green

Monday, April 16, 2018 12:21 PM UTC

Monday, Apr. 16, 2018 12:21 PM UTC

Bitcoin enjoyed a strong week and saw its value soar back past the $8,000 barrier amid spiralling confidence levels and a buying frenzy. 

Bitcoin enjoyed a strong week and saw its value soar back past the $8,000 barrier amid spiraling confidence levels and a buying frenzy. The world’s largest and most popular cryptocurrency grew by more than 20% in the past week, providing a boon to investors. Anyone betting with sportsbooks in Bitcoin before changing their winnings into dollars would have enjoyed a strong week, as Bitcoin’s value skyrocketed in short bursts. At one point on April 13, it jumped by more than $1,000 in just a few minutes, meaning Friday the 13th was a lucky day for Bitcoin. Some analysts are now claiming that Bitcoin has bottomed out and good times lie ahead, others say it can continue to grow, while some urge ongoing caution.

Dan Morehead, chief executive at Pantera Capital, said: “I rarely have such strong conviction on timing. A wall of institutional money will drive the markets much higher.” Michael Jackson is also predicting a thriller (pun intended) for Bitcoin in the weeks and months ahead. The former chief operating officer at Skype, who now works in the cryptocurrency sphere, said: “The price has been driven by speculators and they suddenly got cold feet but there’s considerable effort going on behind the scenes, including new underlying technology that is powering faster transactions. Meanwhile, regulators seem open-minded and are now working to eliminate the risks for consumers. So I see no reason why Bitcoin shouldn’t fulfil its dream. And if it does then recent price falls will appear trivial.”

He is referring to a stark crash that occurred at the start of 2018, but Bitcoin’s price is now slowly climbing back up. It enjoyed one of its best ever weeks, despite a Bank of America analyst calling Bitcoin the biggest bubble in history and Barclays economists likening its meteoric 2017 rise to a virus. Rather than a bubble bursting, the market capitalization has shot up from $114.6 billion to $138.3 billion. There has been no official word on who was behind the buying frenzy, but speculation rages that an institutional investor or a Bitcoin whale snapped up large amounts of the cryptocurrency.

Fears of regulation still abound, while social media giants banning Bitcoin ads dented market confidence, but overall the news flow has become more positive. Most of the tax selling has finished as the deadline approaches to file tax returns, and a considerable short position has been capitalized upon by large players, leading technical resistance to falter. Fundstrat Global Advisors’ Tom Lee said: “The risk/reward for BTC is still asymmetrically positive. As we discussed recently, we think capital gains-related tax selling played a factor in the recent weakness and these pressures should be alleviating soon.”

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I have no gut feeling for prices in bitcoin. Are long decimal numbers like 0.00044282 intuitive to you? Looking for better ways to denominate prices in bitcoin made me write this: https://t.co/bc5LJ6VizP

— Marlene Rupp (@lenrupp) April 16, 2018
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More and more retail outlets are starting to accept Bitcoin payments, and it continues to become more widespread and acceptable. Soon it will seized upon by pension investment funds, according to one analyst. Ari Paul, chief investment officer at cryptocurrency hedge fund BlockTower Capital, said: “I do think it’s inevitable from a few angles. Even if they never believe in it as an asset class, they’re smart enough to recognize the alpha opportunity. Endowments could pull the trigger at any moment. They’re on the fence.”

It was, however, a bad week for Pang Joon Hau, a Malaysian man who traveled to Singapore in search of Bitcoin sellers. He met with a broker at his hotel and waited for a seller to arrive, but they turned out to be criminals and they robbed him of $278,000. The Singapore police force caught the perpetrators, but it shows why it is important to exercise extreme caution when buying Bitcoin in person. It is also worth exercising caution when investing in Bitcoin and altcoins and, despite recent gains, it remains advisable to change winnings back into dollars quickly to prevent a fall wiping out your margins.

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