According to Coinbase, bitcoin soared more than 17% on Thursday (April 12th) to more than 8,000 US dollars, setting a high of 8011 U.S. dollars to a two-week high. Bitcoin rose sharply from 6,786 U.S. dollars on Thursday morning.
Nick Kirk, data director at Cypher Capital, said: "Today, the buying of Bitcoin has increased. Many short sellers have been forced to close their positions, which is one of the reasons for the rise in Bitcoin prices. The sharp rebound is more likely to be an earlier regulation. The reaction to the release of pressure. Although Bitcoin's recent price has been declining, the technology development of the new generation of Bitcoincontinues, Bitcoin prices will return to normal sooner or later."
The sudden surge has forced traders to bet on cryptocurrencies, and the ratio of short-term transactions to long-term transactions has been increasing recently. Cipher Capital, a cryptocurrency trading company, said: "Today's buying has increased, and many of these short trades have been forced to clear their positions, which has caused the price of Bitcoin to rise." Bitcoin's price soared to more than $19,000 in December 2017, but In view of the suppression of US tax supervision, the price of Bitcoin has dropped by about two-thirds.
Since the US Revenue Agency treats cryptocurrency as property, it plans to impose a tax on investors who will be involved in the sale or trade of Bitcoin since 2017. This means that American households may owe nearly 25 billion U.S. dollars to the IRS for encryption. Currency capital gains tax. Some traders said that the big rise of Bitcoin on Thursday may ease regulatory pressure. Although the price of this demon coin has been falling recently, the development of the next-generation Bitcoin infrastructure has not stopped.
Fundstrat Global Advisors said in a report: "The cryptocurrency is showing early signs of improvement after a decline in March. Bitcoin has stabilized at more than 6500 U.S, dollars support level in the past two weeks, the next major resistance area. Nearly 9000 U.S. dollars, other major cryptocurrencies also rose on Thursday.
The spot price of Ethereum, the second largest cryptocurrency by market value, on the Bitfinex exchange rose 12.35% to $490.99.
Ripple spot of Poloniex exchange rose 14.94% to $0.63.
Litecoin fell 8.08% to $125.79, but going up again.
Although there is no obvious directional driving factor behind this round of gains, some people say that Spanish banking giant Santander has launched an international payment service based on blockchain technology, or has supported the escalation of cryptocurrency prices.
It was reported on Friday that Santander Bank (MC:SAN) will launch its "One Pay FX" cross-border payment system in Spain, the United Kingdom, Brazil and Poland. The system is said to use a distributed ledger technology developed by Ripple.
The move by the Spanish bank rekindled the prospect that distributed technology on the underlying technology of cryptocurrency (including Bitcoin) will play a role in mainstream payments.
At the same time, Pantera Capital Management, one of the world's largest cryptocurrency hedge funds, has received attention. The fund said that Bitcoin has bottomed out and that, in most of 2018, Bitcoin will remain above 6,500 U.S. dollars.
Author: Vidrih Marko