On Friday, Bitcoin (BTC) experienced one of its largest price spikes in history, which left the crypto markets vibrant for more than 15 hours. In that period, the BTC price jumped from around $7450 to more than $10000.
Many people attributed the bullish trend to Chinese President Xi Jinping’s support for blockchain technology. Jinping made quite a bullish statement on the technology on which BTC anchors, making the price of the leading cryptocurrency hike to five figures.
Based on TradingView figures, BTC topped out past $10,000, which amounts to an intraday gain of about 38 percent. As of this writing, BTC price stands at $9211.41 on CoinMarketCap, which is still a gain of impressive margins.
One trader and analyst Alex Kruger took to twitter, saying it was the fourth-largest gain in history. He also underscored that the spike was a huge move, bigger than even those in late 2017.
$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 Krüger (@krugermacro) October 26, 2019
With the BTC price apparently back to September levels, the crypto community is hopeful that the bearish trend is over, and the rally witnessed at the beginning of this year could resume. But just what could have led to the BTC price surge?
Possible Reasons for Recent BTC Price Surge
In addition to Jinping’s statement that “We must take the blockchain as an important breakthrough for independent innovation of core technologies,” a couple of other factors could have driven the BTC price hike.
According to VanEck Director, Gabor Gurbacs, the expiry of CME futures on Thursday and the arrest of the Crypto Capital CEO could provide a good reason for the inflow of funds into exchanges.
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
This added to Bakkt’s recent performance, which just hit a record day for future contracts. This already gives four reasons that could have driven the BTC price surge. Bakkt has hit a new record level of more than 1,100 BTC and the platform plans to launch 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
A Looming Altcoin Season?
In crypto space, Bitcoin (BTC) dictates the momentum. The massive move witnessed on Friday injected $55 billion into space, pushing the total market cap to more than $250 billion.
As BTC price went on a bullish mode, Ethereum (ETH) equally jumped to $190, witnessing a 15% gain. On the same note, Ripple’s XRP also went on an upward trend above $0.30 and recording a 9% gain. Other altcoins such as BCH, BSV, and LTC went on a bullish mode recording a price gain between 18 and 25 percent. Overall, most altcoins made double-digit price gains.
Featured Image: Hiptoro