Altcoin News: The Bitcoin’s Price Jump Above $5,000 Is Caused by the Purchases of One Trader

April 3, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The general director of the cryptocurrency company BCB Group said that the latest increase in the Bitcoin rate was due to the purchases of one investor who distributed $100 million on three major exchanges.

Oliver von Landsberg-Sadie, in a conversation with Reuters, stated that the reason for the Bitcoin breakthrough above $5,000 was a certain investor who made deals totaling about 20,000 BTC simultaneously on the three exchanges — Coinbase, Kraken, and Bitstamp.

“If you look at the volumes on each of those three exchanges — there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour”, said Oliver.

According to DataDash, a cryptocurrency analyst, we most likely begin to observe a situation where holders of large amounts of Bitcoin, who managed to accumulate them through OTC transactions, begin to move the price in order to realize their larger positions on the spot market:

“For the past few months, over-the-counter buyers have had a good opportunity to accumulate Bitcoins at low price levels. And as soon as their share of Bitcoin becomes sufficient and as soon as they form their long-term positions, they “attack” the spot market. They will start clearing the book of applications and build up their positions in the spot market. Why should they do it? They have built up large positions in the over-the-counter market, without causing price fluctuations. Now they will buy Bitcoins, perhaps around 50,000–60,000 BTC, on large cryptocurrency exchanges to move the price up. Thanks to such actions, the value of their much larger positions will increase. And this can happen regardless of whether people think it is right or not.”

However, it’s too early to talk about a trend change. DataDash recommends taking into account the likelihood of a possible decline after such a large jump:

“Before talking about a bull trend, you need to eliminate the probability of a false breakdown. If the price in the near future loses more than 50% of the last movement, it will not be a very positive factor. ”

Author: Marko Vidrih