In a significant turnaround in the markets today, the price of Bitcoin (BTC) has surged by more than $1,000 in less than half an hour. Not only is it now well above the $10,000 threshold, but it is also one of the sharpest recoveries in the past year.
The Bitcoin price had been on a gradual slide throughout the start of Thursday, in the aftermath of yesterday’s Congressional hearing. Just after the beginning of the American trading day, BTC fell to just under $9,400.
But as the graph below shows, within the space of 20-30 minutes, the Bitcoin price surged upwards by more than $1,000 taking the coin back to $10,400. In terms of market cap, that’s more than $20bn: approximately 7% of the total value of the digital asset market.
Bitcoin was trading at just under $10,600 at the time of writing, giving it a total value of $188.9bn.
Analysis from TheTIE – an aggregator of tweet volume and the positivity/negativity of comments – shows a significant increase of sentiment hours before the eventual surge and might mean preparation was well underway.
This sudden change in fortunes may have its origins in a number of coalescing factors. For example, major liquidation of short positions – as reported by WhaleCalls – easing off some of the downward pressure on Bitcoin, thereby causing the price to rise organically.
Combined with an unexpectedly bullish hearing from the Congressional hearing yesterday (and positive comments from House Representatives today), the market has experienced a sudden exponential surge upwards, triggering buy orders and pushing the price back to its pre-established range – between $10,000 and $13,800.
Although these types of ‘miracle moves’ are rare, they are not unheard of. It was such a movement back in early April – the ‘Bitcoin boom’ – which kicked off this entire rally. In that case, Bitcoin moved with a very tight range and a sudden buy order wiped out most of the downwards pressure and pushed BTC up by nearly $800 in ninety minutes or so.
That today’s range has been $1,000 in thirty minutes might be a sign of a far bigger and more active market than it existed three and a half months ago. Whatever happens next, Bitcoin continues to catch investors with their pants down.