Crypto Markets Explode, Bitcoin Surges Above $8,000

Investing, News | May 14, 2019 By:

The cryptocurrency markets have experienced an explosion of growth today, with all the top ten coins trading in the green. The overall crypto market increased by almost $32 billion over the past 24 hours, from $212 billion to $244 billion.

The price of bitcoin jumped more than $1,000 to break the $8,000 mark over the last 24 hours. In early trading, the most popular coin is up 14.56% at $8,088 per coin. The last time bitcoin traded above $8,000 was on July 24, 2018.

The biggest gainer on the day is Ripple’s XRP, surging by more than 18 percent, followed by Bitcoin Cash, Ethereum and EOS, which are all up by over 10 percent.

Gavin Smith, CEO of cryptocurrency consortium Panxora, said that bitcoin’s rise is partly due to the slump in global stock and commodity markets, meaning that larger investors are turning to bitcoin as it is the only asset class in the green.

This, combined with retail crypto investors’ tendencies to “HODL”, means that there is currently a favorable balance between supply and demand in the market at the moment.

 “There has been considerable pent up demand for bitcoin from institutions hoping to gain some exposure to the asset class. Breaking above the previous summer’s lows at $6000-$6200 was always a key growth milestone, but this has also come during a slump in global stock and commodity markets. As a result, a number of large players are stepping in to buy bitcoin, as it is the only asset class exhibiting upward momentum at the moment.

“Add to this the natural tendency of the retail crypto community to hold onto their coins rather than actively trade, and you get a vacuum of selling, which is a key factor behind the dramatic price rises of the past week.

“This doesn’t mean it’ll be plain sailing from now on. It’s likely that we’ll enter a very choppy volatile period of back and forth, with bitcoin’s value ranging between 8,500 and 6,500, before approaching 10,000 towards the end of the year. At the moment, none of our models are signalling a sell signal, so now isn’t the best time to go short. Market participants would do best to hold off from entering new positions at this level and wait for a pullback to lower levels before initiating new long positions.”