Monday, August 26 – Bitcoin (BTC) price briefly reached a little over $10,500 today. The first and largest cryptocurrency has been very bullish throughout the week.
Is margin traders responsible for Bitcoin (BTC) price volatility?
On Monday, Bitcoin gained hundreds of dollars in just a few minutes as revealed by Coin360. During that short period, BTC reached up to $10,600 from an even $10,000 on a number of crypto exchanges. This type of action is what bitcoin traders are looking for. It produces a positive result of 2.7% returns for investors this month.
This small rally exhorts a lot of confidence on some bitcoin analysts, commentators, speculators and investors.
“Bitcoin is a coiled spring about to explode higher,” Max Keiser tweeted mid-day today. Keiser has always been bullish on Bitcoin. Multiple times he has claimed BTC price will increase as network performance increases.
Margin trading is also making an impact as crypto exchanges like Binance and BitMEX offers more and more popular trading tools.
A twitter account with the handle Squeeze noted that
“The effect of cascading margin calls and stop loss triggers causing $300 slippage between XBT perpetual swaps on Bitmex vs Spot BTC,” the tweet states on Monday.
Bitcoin’s tides did not lift altcoins’ boats
The ever growing list of altcoins did not benefit from Bitcoin’s gain. Ethereum for instance, the largest altcoin in the by market capitalization produces a meager gain of 0.5% comparing to BTC’s 2.7%.
Ripple (XRP) – the pre-mined altcoin working to complete with Swift produces nearly identical gain. Bitcoin Cash (BCH) and Bitcoin SV (BSV) performed a tiny bit better, clocking 2.2% and 1.2% respectively.
At the time of this writing, the marketcap for all cryptocurrencies stands at $269 billion. Bitcoin accounts for 68.8% of the total market cap.