Bitcoin Price Breaks All-Time High, Hits $1,300: Potential Factors

Published at: April 26, 2017

Bitcoin price officially reached $1,300 on April 26, surpassing its previous all-time high price at $1,277. This occurred minutes before the decision of the US Securities and Exchange Commission to deny the Winklevoss twins’ ETF was announced.

The Winklevoss Twins strike again

Most analysts seem to believe that the recent surge in Bitcoin price was caused by the SEC’s decision to re-examine the Bitcoin ETF proposal of the Winklevoss Twins. The commission accepted a petition submitted by BATS Global Markets and began a one month process to review the proposal of the COIN ETF once again.

"The news of the review has definitely excited speculators, although it's unclear if this will alter the SEC's decision. So the gains in the last 24 hours may be temporary," Thomas Glucksmann, head of marketing at regulated cryptocurrency trading platform Gatecoin, said in an interview.

However, the upward trend of Bitcoin price has maintained its momentum over the past week. It is difficult to conclude that the SEC’s recent ruling led to a surge in Bitcoin price as the demand for an ETF significantly decreased after its initial denial. More importantly, Bitcoin price recovered rapidly after the denial of the COIN ETF.

Thus, while the Bitcoin ETF re-examining process could be one of the factors to affect Bitcoin’s recent price surge, it isn’t the driving factor.

The recent price trend of Bitcoin is not organic

Rather, it is likely that the arbitrage in the US market caused by Bitfinex and other exchanges’ inability to process withdrawals and deposits in fiat money is causing Bitcoin price to increase at a rapid rate.

According to various Bitcoin market data providers including BraveNewCoin, Bitcoin price in the US, which holds 26.6 percent of the global Bitcoin exchange market share averaging at $1,315. On the other hand, Japan, the largest Bitcoin exchange market, is demonstrating an average price of $1,297.

Competitors in the US Bitcoin exchange market including Bitstamp expressed their concerns over the current Bitfinex issue and its conflict with its intermediary banks. Nejc Kodric, CEO of the major US exchange Bitstamp, said in an interview that the recent Bitcoin price trend is not organic. It demonstrates a high level of instability.

Kodric stated:

"There are three things that an exchange can have trouble with. The first is having a hack, the second thing is being shut down or warned or anything around regulators and the third is getting your accounts shut down. You can survive the first two. But the third is a big one. That's a lethal injection for an exchange.”

If one of the largest exchanges in the US, the second largest Bitcoin exchange market, demonstrates a $100 premium, it would likely act as a driving factor of Bitcoin price. Some analysts predict Bitcoin price will decline in the short-term due to this inorganic growth.

Tags
Bitcoin
Bitcoin Price
Trading
Cryptocurrency Exchange
Related Posts
Dreading September? Bitcoin price hopes to break the slump trend
Bitcoin (BTC) has been struggling to break the $50,000 mark for over 10 days now. However, on Sept. 2, the premium cryptocurrency briefly surpassed the milestone, sending positive ripples across the market. Since then, the token has dropped below the mark to trade in the $49,000 range before rebounding to hit the $50,000 mark yet again on Sept. 3. As Bitcoin often behaves in a cyclical pattern, a look at the monthly trends for September could reveal patterns in the price, which in turn could be helpful to gauge the outlook for the upcoming month. Historically, September has been one …
Bitcoin / Sept. 4, 2021
Afraid to buy the dip? Bitcoin options provide a safer way to ‘go long’ from $38K
The last time Bitcoin (BTC) traded above $50,000 was Dec. 27, 2021. Since then, four months have passed, but traders seem somewhat optimistic that inflation has hit the necessary threshold to trigger cryptocurrency adoption. In theory, the 8.5% inflation in the United States means that every five years, the prices increase by 50%. This essentially turns $100 into $66 by slashing 33% of the dollar’s purchasing power. The U.S. Federal Reserve FOMC meeting is expected to rule on the interest rates on May 4, but more importantly, the FED is expected to announce a program to offload part of its …
Bitcoin / May 2, 2022
3 key crypto price events to watch in the wake of the FTX and Alameda debacle
Up until the start of this week, Bitcoin (BTC) had been demonstrating record-low volatility, and this gave altcoins enough latitude to paint some nice technical setups. At the same time, on-chain data and technical analysis were beginning to suggest that BTC was midway through carving out a bottom, and many analysts believed that brighter days lay ahead. Fast forward to the present, and the volatility spike the market received actually turned out to be a black swan event. As you already know, FTX is kaput. Alameda Research is kaput. BlockFi has put a stop to withdrawals, citing an inability to …
Bitcoin / Nov. 11, 2022
Bitcoin’s bear market is far from over, but data points to improving investor sentiment
2022 was a near-unprecedented year of extremes and black swan events for the crypto market, and now that the year is about to wrap up, analysts are reflecting on the lessons learned and attempting to identify the trends which may point to bullish price action in 2023. The collapse of Terra Luna, Three Arrows Capital and FTX created a credit crunch, a severe reduction in capital inflows and an increased threat that additional major centralized exchanges could collapse. Despite the severity of the market downturn, a few positives have emerged. Data shows long-term hodlers and smaller-sized wallets are actively accumulating …
Bitcoin / Dec. 12, 2022
Bitcoin’s big month: Did US institutions prevail over Asian retail traders?
Bitcoin experienced the second-strongest January in its history — and the best since 2013 — rising nearly 40% amid wide reports that institutional investors were back on board. Zhong Yang Chan, head of research at CoinGecko, told Cointelegraph that there were “net institutional inflows into digital asset funds in January 2023, particularly in the last two weeks, with Bitcoin the largest beneficiary.” Meanwhile, a Jan. 30 CoinShares blog noted that the total assets under management in digital asset investment products — a good gauge of institutional participation — had risen to $28 billion, led by Bitcoin (BTC), which was up …
Adoption / Feb. 3, 2023