This was good news for those who held on to their Bitcoin and a created renewed hope for bitcoin backers.
The massive decline of bitcoin in the first quarter of 2018 got top market analysts and financial experts predicting that the bitcoin bubble had burst and that the cryptocurrency would not reach the levels that it did towards the end of 2017.
Many experts predicted that bitcoins value would continue to decline in 2018.
The sudden 17 percent increase in bitcoin value caught everybody off-guard and left bitcoin analysts puzzled. The recent trading on Coinbase showed the volatility of the market as Bitcoin recovered. In the past 24 hours, the value of Bitcoin rose quickly. At the start of Thursday, bitcoin was pegged at around $6,786 and in a few hours shot up and crossed the $8,000 mark before dropping and ending the day at $7,800.
According to market strategists, this sudden jump in value has forced many of those who decided to dump their Bitcoin to try and buy back into the market. Bitcoin was not alone in its recovery. Its major competitor, Ethereum was recorded to be trading 9.5 percent higher at around $453.
Financial Experts Try To Explain The Surge
There are a number of market analysts who believe that the massive decline in bitcoin value during the first quarter of 2018 is due to the crackdown by financial regulators. The other market concern is over the US tax deadline on April 17 as many US based bitcoin investors will have to pay massive taxes on their cryptocurrency purchases which is due by April 17. This additional pressure on bitcoin and bitcoin investors in the US has also caused bitcoin’s value to decline.
Some financial analysts think that this Thursday's surge was just a release of some of the market pressure. This momentary recovery is just some market movement catching up. Some even say that when the April 17 deadline has passed, people can expect Bitcoin prices to rebound and rise again like last year.
In a statement, Nick Kirk, quantitative developer and data scientist said
Rob Sluymer, a technical strategist at Fundstrat Global Advisors, the next milestone for Bitcoin would be to reach $9,000 again, which would be a good sign that the cryptocurrency is recovering.The ratio of short margin trades versus longs has been increasing recently. Buying volume ticked up today and a lot of these short trades got liquidated, helping fuel the rally.