Many within the cryptocurrency community will wake up to see, or where trading and watching when the price of bitcoin almost hit the $7000 mark few hours ago, even though the prices of other cryptocurrencies like ethereum, xrp, bitcoin cash, EOS,Stellar lumen and litecoin where unable to appreciate with same momentum, which is usually common in spike of price rise other vechain Thor and Tezos had been gaining more than 40% in the last 7 days.
Some of the reasons for this sudden rise in bitcoin price which is above $6700 as at the time of writing this article are:
1) Shutdown of a cryptocurrency exchange for a moment for maintenance: most cryptocurrency traders and investors who had been following the performance of some major cryptocurrencies with wide range of investors and traders understand the role of crypto currency exchanges in determining the price fluctuation of coins.
Few months ago, the price of Bytecoin that was appreciating went down and is still struggling after it went down for maintenance and Binance exchange stopped withdrawal. In the same way, BitMex, a major bitcoin exchange went down for maintenance which led to the price rise.
2) Increase in trading as a result of the shutdown: when the shutdown was noticed, there was a higher demand for bitcoin from businesses and traders that could have sourced for it from BitMex. This resulted in a demand and supply stretch, hence an increase in trading volume to fill up the gap that was created by inactivity of traders in BitMex.
To a great extent, increase in trading volume affects the price of bitcoin. That led to its increase in price by more than $300 within few minutes. 3) this sprouted speculation: bitcoin is a coin that response greatly to speculation within its community.
Many people hope for a continuous rise, hence started holding the bitcoin. The absence of more bitcoin as a result of investors that wanted to recover some of there loses at the moment increased the bitcoin price.
