5 Reasons That Boosted Bitcoin Price (BTC) Above $8,000

Published on 12 April 2018 by Cryptovest Staff

Positive sentiment returns, and the $1,000 price spike showed there are money waiting on the sidelines.

Bitcoin Price (BTC) surged above $8,000 again, before settling comfortably around $7,700. It seemed the asset’s slide did not wipe out buyers’ interest, and the factors that boost the price of BTC are still strong.

In the past days, BTC was at a crossroads, potentially seen falling further, but it picked the upward direction.

https://twitter.com/CryptoYoda1338/status/984207182022496256

Here are the five chief reasons BTC reacted so strongly:

US Buyers Return: US buyers are tentatively returning, possibly awaiting the end of the US tax season to start buying anew. US buyers are one of the biggest demographics, potentially injecting new fiat into the markets. The GDAX trading sees BTC at $7,727, just below the Bitfinex levels, showing a strong upward bidding in dollar terms.
Positive Sentiment Returns: Perhaps buyers were standing on the sidelines, waiting for an appropriate moment to jump into the markets once again. With volumes doubling overnight, there were enough traders to boost the trend. Additionally, the strong performance of altcoins gave the markets further confidence, and BTC soon followed.
Bot Trading: Sudden and dramatic moves are sometimes the result of algorithms getting triggered. At this point, it is unknown what may happen once human emotions hit the mix, and some expect a sudden correction to lower levels. The price rise is exaggerated compared to the last few days, and the algorithmic trading may be the cause.

While Bitcoin tended to drop and drift for months, this time, the fall and recovery may play out much faster, as more mainstream interest is flowing into BTC. This may accelerate the next climb, which some expect should repeat the summer performance in altcoins. Still, the levels around $8,000 look tame compared to the nearly $20,000 peak.