Bitcoin Price Action Suggests This Is No Crypto-Glitch

LONDON (Capital Markets in Africa) – The weirdest thing that’s happened in markets this week is the fact that we’re talking about Bitcoin and other cryptocurrencies again after a sudden surge in prices late on Monday night. So is this the beginning of a new Bitcoin spring or just a blip? Obviously I have no idea, but there are two things that jump out when looking at the market action.

Literally every coin basically climbed at the same time. And not just the big ones, but all of the tiny garbage coins as `well. Check out CoinMarketCap, and looking at the right column and you can see they all have identical charts. My 2 cents is that this is not a sign of market health. It’d be more encouraging to see more coins die as investors (or traders, more likely) become more discriminating. Also the fact that the timing was so identical doesn’t lend a lot of confidence in the health of the overall market structure.

My other thought is that it’s interesting that prices have remained elevated. It would not have been implausible to imagine a quick spike and then a quick reversal back down to where things were. And maybe that will still happen. But now we’re looking at two days, which at least suggests that it wasn’t some weird glitch in the market, but that there are people who want to keep buying at these levels.

Source: Bloomberg Business News