The Bitcoin price has risen to $57,500 in a huge rally that has erased almost all of the pain felt from the recent Bitcoin price crash that saw the digital currency fall to a low of $57,369 on April Fools Day. Some analysts have suggested the Bitcoin price surge is due to a so-called “Moon Pump” that has been initiated by anonymous Bitcoin whales, who are thought to be looking to take advantage of the fact that traders are focused on the upcoming Bitcoin Cash hard fork.
The price of Bitcoin has surged to $57,000 today following an unexpected crash in which the cryptocurrency lost over $30,000 in value in the space of one minute. The crash sparked a wave of panic selling that culminated in BTC plunging to $35,000 before recovering to $57,000, a staggering $22,000 increase.
Bitcoin (BTC) outpaced the dollar on the 30th. April broke through the $57,000 mark again as an unexpectedly bullish end to the month surprised traders.
1-hour candlestick chart of BTC/USD (Bitstamp). Source: TradingView
Maturity of $4.2 billion led to sharp rise in bitcoin
Data from Cointelegraph Markets Pro and Tradingview showed that BTC/USD jumped 5% in a few hours on Friday, bringing in its green monthly close for April.
At the time of writing the $57,000 level was still in sight and the pair needed to reach $58,800 before the April monthly candle turned red.
On social media, traders pointed out that $4.2 billion worth of options are expiring this month, giving bitcoin a chance to move.
As Cointelegraph often reports, expiration events typically put pressure on upstream prices, but post-expiration rallies vary considerably in strength and sometimes do not occur at all.
Gone Red April
For Lex Moskovsky, CIO of Moscow Capital, the composition of the market that day was reason for optimism.
This jump in the price of bitcoin is caused by the spot. He noted that funding has actually decreased slightly.
Moskovskiy pointed to the refinancing rate on the stock markets, whose decline means short positions are paid for long positions, a classic sign of further uptrend.
Demand from cash buyers also indicates that BTC are being bought without leverage, leading to a more organic movement of real coins into private portfolios.
Bitcoinfunding rate versus BTC/USD. Source: Lex Moskovsky/Twitter
A few days ago, bitcoin was headed for its biggest April loss since 2015, in stark contrast to the overall trend of the past 12 years.
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