The Price of Bitcoin Skyrocketed to Around 5 Thousand Dollars
Volatility is one of the most important factors that needs to be taken into consideration when talking about the cryptocurrency industry. There is no certainty in this sphere, no digital coin, whether it is a stablecoin or the world’s #1 cryptocurrency, is protected from severe price jumps. As we all probably know by now, the cryptocurrency market was characterized mainly by a sharp downward trend at the end of 2018 and the beginning of 2019. The digital coins collapsed, leaving their holders in terror and despair. Financial analysts and experts give various reasons for such a phenomenon, the main ones being the recession of hype around cryptocurrencies, their flaws and the inability of most institutions worldwide to adapt to the system of digital assets and their high volatility. However, this coin has two sides. Unexpected upward price jumps can happen exactly like the downward ones. Today, on April 2, the price of Bitcoin suddenly skyrocketed, which can be seen on the price chart of the CoinMarketCap. [caption id="attachment_33256" align="alignnone" width="774"] Source: CoinMarketCap[/caption] At 8:30 am UTC, the world’s #1 cryptocurrency traded at a price of around $4850 dollars per coin, which is the highest value of Bitcoin in quite a few months of being in recession. Moreover, the rest of cryptocurrencies have also followed the upward trend. Crypto specialists and enthusiasts are now trying to determine the cause of the price jump, but there is little progress so far. Even the most experienced financial gurus cannot claim for sure that this or that event is going to happen on the crypto market and why, since it is way too unpredictable.
The Bitcoin market and crypto market in general continues to be small relative to the rest of the markets and emotional. It’s still very much subject to waves of enthusiasm. I don’t think today is anything special, other than a temporary enthusiasm,” stated Jehan Chu, the co-founder of a Hong Kong Bitcoin investment company Kenetic.
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