Bitcoin experienced a rise of more than 15% in the week ending 13 April, increasing from $6,000 to $8,000. During 12 April, the cryptocurrency surged by $1,100 within only 30 minutes. Some analysts suggest that Bitcoin trades during this 30-60 minute period marked the highest level of trading in its history.
Bitcoin’s Steep Price Rise
Although Bitcoin remains below its 23 March value of $8,918, the sharp increase in its price has led some analysts to predict a price recovery. With a daily trading volume of over $9 billion, it is considered that several billion dollars of new capital entered the market, leading to a significant spike in price.
The surge in Bitcoin’s price did not affect other cryptocurrencies, as the entire market increased by over $20bn on 12 April. It is possible that institutional investors injected billions of dollars into the cryptocurrency market in a short time period, causing Bitcoin’s price to surge dramatically.
Volatility Persists
Potential Bitcoin investors should exercise caution, as the cryptocurrency has been fairly volatile over the past few months. Although it reached record highs of over $17,000 in December 2017, it has struggled throughout much of 2018. All cryptocurrencies experienced falling values earlier this year, which could be attributed to concerns about possible regulatory restrictions.