Bitcoin jumps 20 percent, mystery order seen as catalyst

Bitcoin jumps 20 percent, mystery order seen as catalyst

Two other large cryptocurrencies - Ethereum's ether and Ripple's XRP - also jumped higher, gaining by 5.9 per cent and 5.8 per cent, respectively.

Bitcoin has been around for almost ten years and during that time period, BTC became and remained the top popular cryptocurrency in the market, weighing over 110 billion dollars in its market capitalization. It gives a major lift to the computer-driven cryptocurrency trading.

Analysts could not point to any specific news or developments in the cryptocurrency sector that could explain the mystery buyer's big order. In 2018, fears of regulatory clampdowns and declining interest from retail investors saw bitcoin slump by about three-quarters. Most experienced traders will agree that trying to time the market is pretty futile, especially with crypto which is still clearly extremely volatile.

An anonymous trader who recently placed $100 million Dollars worth of concurrent Bitcoin buy orders on Coinbase, Kraken and Bitstamp probably triggered a "frenzy" of automated buys, a source to Reuters claims.

He suggested this was spread over three coin exchanges, Coinable and Kraken in the United States and Bitstamp in Luxembourg.

"There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC", he said.

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"If you look at the volumes on each of those three exchanges there were in-concert, synchronised, units of volume of around 7,000 Bitcoin in an hour".

Charlie Hayter, founder of the website CryptoCompare, confirmed Landsberg-Sadie's contention that bots helped fuel the latest rally when he told Reuters that big orders on crypto exchanges tend to trigger algorithmic echoes.

As bitcoin surged, there were 6 million trades over an hour, Hayter said - three to four times the usual amount, with orders concentrated on Asian-based exchanges.

The cryptocurrency markets have remained bullish today, adding $11 billion to the total value of all cryptocurrencies - from $161 billion to $172 billion.

The rise on altcoins early this morning brought the dominance of Bitcoin back to 50.8%.

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