Major cryptocurrencies including Bitcoin, Ethereum, and Bitcoin Cash took a giant unexpected leap recently which has not only impacted other cryptocurrencies, but also the crypto market itself as a whole. The price of Bitcoin took an abrupt jump to the $6,800 price mark during the trading yesterday. This movement represents yet another potential attempt to break through the $7,000 barrier that Bitcoin has been stuck under for quite some time now.
Cryptocurrencies and the market, in general, have been subjected to a lot of good news in recent weeks, which, combined together, could be the reason why the market is starting to thrive. Take South Korea for instance, being one of the major markets for crypto trading, it surely made an impact when the South Korean government announced that they have decided to loosen some restrictions on many aspects of cryptocurrency trading within the country. This cut-down of restrictions was also observed for examinations to allow domestic initial coin offerings in the country.
If this is the case, it would mean that the current spike in value is just the start of a major rally in the market. KoreaTimes reported that Financial regulators of South Korea have decided to ease-down the rules on digital assets. The new policies will be inline with the standards published by G20 nations in an attempt to create a uniform set of regulations among the major crypto-involved countries. CCN also reported that this attempt to loosen restrictions by South Korea is a way for financial regulators to classify cryptocurrency exchanges as ‘regulated financial institutions’.
Another major reason for the spike in value is believed by many to be the rapidly increasing capacity of Bitcoin Lightning Network. Reports from a number of resources and news outlets have stated that lightning network capacity is increasing by 50 percent every week with over 20 new stores accepting the Lightning payment method per day.
While we can never truly know why the market suddenly jumped into action within a period of 24 hours, we can explore all possible reasons. And as much as we would want the reason to be fair, we cannot deny the fact that this potential rally could also be a result of a manipulation attempt. It is very possible that any or all of the infamous crypto ‘whales’ could have placed large orders for the major cryptocurrencies which immediately increased market valuation along with sparking other investors to grab the chance while it lasts.
Since we know that Bitcoin has a very limited supply of total coins – 21 million, be exact, with over 17 million in circulation – it is well possible to manipulate the price of Bitcoin by placing large buy orders for the cryptocurrency. As we all know that the crypto market tends to mimic the performance of its major cryptocurrencies including Ethereum, Bitcoin, and Bitcoin Cash, it must be why altcoins started performing better at the same time.