The recent week saw the surge in the price of Bitcoin by nearly 6 percent. It increased from $5000 to $5300. Initially, Bitcoin jumped from $4200 to $5000 which is near about 20 percent gain.
The dominant cryptocurrency, Bitcoin generates shockwaves in the world of the crypto market. It also pushes other cryptocurrency firms to rise higher in their prices. Some of the cryptocurrency firms which saw a surge in the recent week are Litecoin and Ethereum. They recorded large gains against the US dollar.
CEO of Civic and General partner at Multicoin Capital, Vinny Lingham comments on the matter. Lingham says that if bitcoin can surge from $6200, their coin also has similar potential. It can signal the beginning of a major Bull Run.
Lingham speculates the price of Bitcoin might rise rapidly
Reportedly, Lingham says that they can break $6200 for BTC. If they do so, it will start another bull run which can turn out hot and high, according to the CEO of Civic. He further speculates that if the scenario does not occur, the end will be bad.
Further, Lingham notes that the price of Bitcoin might rise rapidly at the time of this Bull Run. By this, they mean that with the increase in the price of Bitcoin, the crypto will also rise. This rise will be irrespective of value, according to Lingham. Lingham points out that if Bitcoin doubles overnight, other assets will follow the same path. He enquires that if nothing changes in terms of the development of other firms, can their price hike?
More Momentum to Bitcoin after $6200
Many technical analysts evaluate the trending buzz in the crypto world. They evaluate with the help of technical indicators like a 200-day moving average. Other indicators are an exponential moving average, 200-day simple moving average. The analysts use it to evaluate the long-term trends in the existing asset. As a result, the analysts concluded with an overall positive outlook.
Back in 2018, Bitcoin surpassed resistance level at $4200. But, now the coin escalates to a whooping over $5000. The various factors supported this move. It included liquidation of huge dollars which are worth short contracts.
According to Lingham, the move of over $6200 level might be difficult to achieve shortly. With the catalysts, the move became easier for Bitcoin.
The market of CME bitcoin futures rose higher with a record-breaking volume of 22,542 contracts. The total worth is about $546 million, reported on the 4th day of April.
SEC estimates real daily spot volume of Bitcoin
With the removal of the inflated volume of Bitcoin, CME bitcoin futures market becomes comparatively bigger. It might be bigger than the whole daily spot exchange market volume of bitcoin. This is the data from March, as per reports.
On the other hand, the US Securities and Exchange Commission or SEC estimates real daily spot volume of bitcoin. The estimation is around $270 million, as per SEC.
However, bitwise has something to say on the topic. According to Bitwise, 95 percent of spot volume of BTC is fake. It also says that the coin’s motive is to list fees and makes up almost real trading.