This month has been an eventful month for the Bitcoin market as the leading cryptocurrency experienced a spike in price. The price of Bitcoin, which has risen above $ 50,000 this week for the first time since the beginning of September, increased by about 10% in one day to over $ 55,000.
The increase also coincided with the market cap of the largest cryptocurrency returning over $1 trillion. That being the case, Bitcoin would need to increase by about 20% from current levels, or add about $10,000 to its current price, to reach its all-time high.
However, popular analyst and investor CryptoWhale explained what the sole driving force behind the price action is. Expressing his thoughts on Twitter, the analyst said:
“The only reason for our spike yesterday was that someone (Tether) bought about $2 Billion worth of Bitcoin. The thing is, BTC has never left the exchange, which means that they are likely to sell soon. Just another “bait and switch” bull trap! Don’t be greedy!”
The only reason we pumped yesterday was because someone (Tether) bought nearly $2 Billion worth of #Bitcoin
The thing is, the $BTC never left the exchange, which means there’s a high chance they will soon sell it.
Just another ‘Bait-and-switch’ bull trap! Don’t get greedy!
— Mr. Whale (@CryptoWhale) October 7, 2021
In contrast, some community members also pointed to other purely ascension-based causes as the sole driver of ascension. A Forbes article attributed the spike to the fact that Wall Street giants were “stacking the market.” In particular, over the past few days, some of the world’s leading banks have reiterated their optimism about Bitcoin. Just this week, Bank of America (BofA) stated in a report that Bitcoin and cryptocurrencies have become “too big to ignore” and are “only in the early stages”. Similarly, US Bank, a leading retail bank, announced this week that it has launched a crypto custody service for institutional investors.
The market was also somewhat relieved by regulatory oversight concerns, with SEC chairman Gary Gensler, as well as the head of the Federal Reserve Bank, stating that the United States has no intention of following China’s lead and banning cryptocurrencies.
Regardless, the market sentiment is generally bullish for Bitcoin, even in the medium term. According to market analyst Van de Poppe, Bitcoin will rise by 2022. The Dutch analyst predicts that Bitcoin will likely reach $275,000 to $325,000 in Q1 2022 before correcting lower again.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.