- Bitcoin corrected above $5,000 for the first time in five months.
- “It’s (bitcoin) still very much subject to waves of enthusiasm. I don’t think today is anything special,” Jehan Chu.
Bitcoin price spiked in gains pulling the entire cryptocurrency market in the green. The largest crypto broke above $5,000 for the first time in five months. The sudden jump had a ripple effect across the market the market cap jolting to $163 billion from $146 recorded on Monday.
It remains unknown what was behind the unexpected jump to highs around $5,089 followed immediately by a retracement to $4,750. Traders are trying to pinpoint reasons that could have led to the surge. On the other hand, swings are not new to the crypto market and according to Bloomberg Jehan Chu, managing partner at blockchain investment and advisory firm Kenetic Capital said:
“The Bitcoin market and crypto market in general continues to be small relative to the rest of the markets — and emotional.” He adds “It’s still very much subject to waves of enthusiasm. I don’t think today is anything special.”
Another expert, George Harrap the CEO of Bitspark says that his firm is placing “most things on pause,” until they ascertain that market has settled down.
Dave Chapman, CEO of crypto exchange ANXONE says that:
“Events such as today’s will probably be seen negatively, or viewed as this market doesn’t conform to the trading of traditional instruments. We have to realize that this asset class is only a decade old, and it only started getting mainstream attention five years ago.”
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