The cryptocurrency market has again undergone strict scrutiny after analysts and market players were shocked by the sudden jump in Bitcoin price two days back on Tuesday. The shocking spike in the price generated fear about the high volatility and risk involved in the cryptocurrency market. Investors and analysts, rather than celebrate, have become all the more conscious about the vulnerability of the market.
After the 2017 bubble, on Tuesday Bitcoin price surged almost 20% above its previous price, provoking many altcoins to increase in price as well. Analysts are busy searching through the records and charts to find the reason for Bitcoin’s spoke. Twitter also caught the frenzy, being flooded with posts and comments about the crypto happenings.
Changpeng Zhao, CEO of Binance, tweeted wondering whether anyone had any clue about this rise, as he himself was clueless.
While many ignored the rush by saying that volatility is the main feature of cryptocurrencies, others anticipated large-scale buying by anonymous investors to skyrocket Bitcoin price further. One explanation currently floating around about the spike in BTC involves a fake news article claiming US SEC would approve Bitcoin ETFs.