Wednesday, May 29, 2024
HomeBTCBitcoin reaches $47K, speculation for recent increase

Bitcoin reaches $47K, speculation for recent increase

The more positive influencers and traders on Twitter celebrated the surge of the king currency Bitcoin during the recent most sharp increase. However, before the celebration of joy of surge, take a moment to evaluate the possibility that the surge is actually due to investors who purchased the dip and are now looking to sell and make a fast profit.

Theories behind bitcoin price increase to USD 47K

Today, Bitcoin was trading with a surge of 5.26 percent at USD 46998.85. This is a 14.75 percent high from the previous week. The true celebration began once the king coin temporarily climbed beyond USD 47k before falling. There are many hypotheses to choose from for the cause of this surge.

  • Russia-Ukraine connection

One hypothesis is that investors are now progressively recovering from the shock of the Russia-Ukraine conflict where Bitcoin shorts liquidations may have helped in boosting prices.

  • Bitcoin moving away from exchanges

In terms of exchange activity, research shows that Bitcoin is rapidly moving away from exchanges. Furthermore, there were around 1.94 million BTC on exchanges at the time of the latest count, matching levels seen since October 2018. As a result, it appears that investors aren’t finished purchasing BTC as long as it remains outside of the historic sell zone.

  • Bitcoin whale theory

Many people would have anticipated whales to appear and begin eating BTC right away. However, there were no significant changes in transactions exceeding USD 1 million. It would be interesting to observe how whales respond after BTC exceeds the psychological barrier of USD 50000.

  • Current bitcoin sentiments and risk

However, it’s critical that weighted emotions stay away from joyful highs since these might lead to sell-offs. At the time of publication, the weighted sentiment was still unfavourable. It’s worth noting that, at the time of writing, BTC was going towards a higher-risk territory.

Read More:



Please enter your comment!
Please enter your name here

14 + 15 =

- Advertisment -

Most Popular