The bitcoin price is rising like nobody’s business! After a disappointing period of hanging around $570, bitcoin has now jumped to $595 at press time, a near $25 spike that occurred in just a few hours.
Also read: Bitcoin Price Prepped for ‘Big Game,’ Analysts Expect Bull Rally
Bitcoin Price Confirming Past Predictions
Such a rise was to be expected, as discussed in our previous price pieces. The longtime sentiment among analysts was that bitcoin was preparing itself for a massive bull run, although no one predicted it would begin this early. Bitcoin has certainly surprised us with its rapid rise in price.
Some analysts claim they’ve felt the start of a bull run since late last week, and the results are certainly in their favor.
One source explained on Friday:
“Finally, some action. It’s taken until the end of the week to come to fruition, and it’s meant we’ve had a pretty boring week from an intraday bitcoin price trading perspective, but we’ve finally been given an entry opportunity… This means that… we are going to end the week up on the markets. Beyond that, as we head into the weekend, we’re looking for an entry on a slightly wider timeframe. We traditionally get some decent moves on the weekend, and this affords us the opportunity to widen things out and go for some sustained volatility profits.”
One thing that may be contributing to bitcoin’s present rise, believe it or not, is Bitfinex. Following a nasty cyber-hack that cost the Hong Kong exchange over $70 million USD, Bitfinex recently handed out its first round of refunds to users who lost money in the attack. The company has entered an agreement with online investment firm BnkToTheFuture to help etch out a respective repayment plan to make sure all affected customers receive their funds back in due time.
“We are pleased to announce the redemption of 1.1812% of outstanding BFX tokens. This redemption was applied pro rata to all wallet balances on September 1, 2016, at 12:00:00 UTC. The redemption does not apply to margin long or short positions – only on settled wallet balances. The amount of the redemption is based on a calculation of reserves in excess of our required contingent liability reserves.”
Despite remaining doubt from the public, the company says it wants to make sure customers are refunded fairly. The move may have possibly reinstated bitcoin traders’ trust, giving them the courage they need to go back to their old ways and heighten usage.
But still, one source warns bitcoin enthusiasts that the current price may be the mere result of market manipulation, and that users should remain careful:
“Market manipulation is never far from the cautious trader’s risk assessment plan. Conceivably, a cartel of whales may be stimulating advance prior to their wicked action of feeding on these same buy positions. The resulting chart could see price reverse from $600 to $550 and then $500… Prudent traders should wait for $600 to be conquered before betting on the upside.”
Do you see bitcoin reaching $600 in short time? Post your comments below!
Image courtesy of Bitcoinist.