Active BTC Wallets Increase Before Market Surge
According to mainstream media reports, the number of active BTC (Bitcoin) wallets went up in the two weeks before the cryptocurrency market suddenly surged in the last couple of days.
Market Intelligence Reports
Bitcoin’s token price surged by more than 15% on the night of April 2, breaking through the $4,500 barrier for the first time in 2019.
According to a report by Flipside Crypto, a market intelligence firm, a large number of Bitcoin wallets became active just two weeks before the massive rally in the cryptocurrency market.
The firm stated that 40% to 50% of all BTC that had been held wallets that has been inactive for 1 to 6 months suddenly became active. Prior to that, an average of about 10% of the Bitcoin held in wallets had been active since March 15.
The head of data science and co-founder of Flipside Crypto, Eric Stone stated that there were now more people who were interested in buying BTC once again. Stone also stated that such price movements were also a result of interest shown in cryptos by a small number of large holders.
According to him, this sudden market surge is reflective of the case late last year when the price of BTC skyrocketed 40%. The difference this time was that more small investors were showing interest.
Flipside Crypto’s Chief Executive Officer and co-founder Dave Balter stated that the market movement this time around was much more significant than the moves in October last year. This time’s surge implied a perception change or increasing confidence in cryptocurrencies.
Other Theories About the Sudden Surge
Theories about why the cryptocurrency market suddenly surged have been abounding. Earlier today, it was reported that this market movement was due to algorithmic trading.
Algorithmic trading is a method of trading that uses automated software that follows and detect trends, after which it decides when the trade transactions should be made. A suggestion was made that BTC’s sudden jump could be attributed to a $100 million transaction that was made on 3 major cryptocurrency exchanges. A mainstream news agency reported that a 20,000 BTC order had been spread across 3 major exchanges – Kraken and Coinbase in the US, and Bitstamp in Luxembourg.
Other theories being thrown up are that technical indicators had also predicted a market surge, that the market surge was due to the highly anticipated BTC halving that is due to take place in May this year, and finally, just that market activity has increased.