The mysterious surge in bitcoin may have been fuelled by ‘whales’ who wanted to ‘pump up the value of their holdings’

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The data firm TokenAnalyst posits that Goliath bitcoin investors simultaneously jumped into the market, leading to this week’s spike in bitcoin’s value. The “whales” acted as a fuse for transactions from thousands of small accounts, one of the firm’s founders said. “It definitely seems like there is intent behind this,” he said. Bitcoin’s inexplicable spike of more than 23% on Tuesday to above $US5,000 a coin led to dozens of theories as to what drove the rally, including a wacky explanation that pinned it on an April Fools’ Day gag. Another theory, from the data firm TokenAnalyst, posits that Goliath-size bitcoin investors intentionally and simultaneously jumped into the market, which acted as a fuse for transactions from thousands of small accounts. Sid Shekhar, a cofounder of the London-based TokenAnalyst, has been tracking the moves and noticed the anomaly. For example, he said, one Tuesday bitcoin transaction that flowed from an…

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