Home Bitcoin News Bitcoin Surges 13% In One Hour As Intense Volatility Continues – Forbes

Bitcoin Surges 13% In One Hour As Intense Volatility Continues – Forbes

by admin

Montreal, Canada – 28 February 2018: Stacked cryptocurrency coins (Bitcoin, Ethereum, Litecoins)


Bitcoin prices continued to experience sharp gyrations today, rising nearly 13% in roughly an hour as the highly leveraged digital currency markets responded to the latest developments surrounding libra.

The first cryptocurrency to scale climbed from roughly $9,282.64 to $10,472.86 between 10:10 EDT and 11:13 EDT, appreciating 12.9% in little more than 60 minutes, CoinDesk data shows.

The digital asset then extended these gains, reaching an intra-day high of $10,671.10 by approximately 12:30 EDT, additional CoinDesk figures reveal.

These latest price movements took place the day after the cryptocurrency fell to nearly $9,000.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] 

Libra Occupies Center Stage

“Bitcoin has been extremely volatile with all the chatter around Libra and comments from the US government,” said Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital.

“Recent implications about stricter regulations did result in a price slump, but overall, the regulatory attention and discussion bode well for Bitcoin and crypto because they highlight the benefits of a decentralized currency over a privately controlled one,” he added.

Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, also weighed in on the situation.

“There was a bit of a panic with the negative news surrounding Libra, but the sentiment towards Bitcoin itself was generally positive,” he stated.

Garcon emphasized that the digital asset’s recent gains may simply have been the result of traders taking advantage of recent losses.

“It seems that the market truly believes anything under $10,000 is too low,” he stated.

“For the first time in a long time it seems like Bitcoin is actually reacting to the fundamental news,” said Mati Greenspan, a senior analyst for eToro.

“The hearing in Congress yesterday was extremely constructive and many US lawmakers seem generally in favor of cryptoassets innovation.”


While some have taken issue with bitcoin’s intense price fluctuations, arguing that it undermines the digital currency’s use as a medium of exchange, this intense volatility may be here to stay.

Jeff Dorman, chief investment officer of asset manager Arca, weighed in on this matter, stating that “a 15% move in one day is actually becoming the norm.”

“The only thing that can cause these types of outsized moves in such a short period of time is leverage,” he stated.

“Little, if any, new money came in or out over the past 4 weeks, but new money was created via leverage. Until this leverage gets sucked out of the system (and it will, it always does), the market may remain very volatile,” said Dorman.

The current turbulence may take a while to die down, according to Ari Paul, chief investment officer of BlockTower Capital.

“I don’t expect a deleveraging any time soon,” he recently stated.

Paul emphasized that “to the contrary, there are more levered trading vehicles launching almost weekly.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS. 

Let’s block ads! (Why?)

Source link

Related Articles

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More