The upswing in Bitcoin prices comes at a time of ongoing blockchain and cryptocurrency conference in New York, which is attended by influential market players and big investors.
Late on Monday, the price of bitcoin surged to more than $8,000 – its highest level since July 2017. The crypto currency’s rally is gaining further momentum. However, there is no real fundamental explanation as to why the bitcoin is trading at its 10-month high.
This upward trend comes at a time when there is an ongoing blockchain and cryptocurrency conference in New York called Consensus, which is attended by influential market players and big investors.The price of bitcoins also rallied during previous Consensus conferences.
From early April, Bitcoin prices were up nearly 17% at $8,131 on the Bitstamp exchange, its largest daily percentage jump.
Bitcoin prices hit a high of $8,167.50 – its 10-month peak.
A few analysts have opined that the bitcoin’s rally has coincided with the escalating U.S.-China trade war which has eroded overall market risk sentiments. It is however too early to declare bitcoin as a safe-haven asset, they said.
According to David Thomas, of the London-based cryptocurrency broker GlobalBlock, once Bitcoin prices breached the key resistance level of $6,000, it fueled investor interest.
Lukman Otunuga, a research analyst at FXTM, said the bullish “golden cross” is already in play on the daily charts. Otunuga was referring to a particular price movement which occurs when the 50-day simple moving average crosses above the 200-day moving average.
Other market participants stated, perceptions of the bitcoin’s resilience in the wake of last week’s $40 million theft from the major Binance exchange was supporting sentiment.
Typically, cryptocurrency markets have previously fallen after high-profile thefts.
The price of a Bitcoin has almost doubled this year, which underscores its volatility following heavy bruising in the previous year. In 2018, it lost nearly three-quarters of its value midst tighter regulation across the globe.