Bitcoin’s share price rose by 14 percent in just one hour a few days ago. Experts are still in the dark as to what exactly might have been the reason for this price increase. That is why the wildest rumours are circulating about how this could happen. Is the Brexit possibly the reason?
However, not only crypto websites are puzzling over the cause of the upward trend, other news formats are also looking for reasons. In an interview with Bloomberg, crypto expert Eric Lam explained various theories for the development of the crypto course. According to Lam, everyone is looking for an explanation: “It remains a guess why Bitcoin has risen so suddenly. In the last 24 hours I’ve talked to a lot of people from the crypto industry and to give a short answer: No one has a good answer as to why this happened.”
An episode of April 1st?
The wildest rumors are circulating as to why the share price has risen. Lam explained that an algorithm could have been the cause when trading Bitcoin. According to a study by Crypto Fund Research, most Bitcoin trading takes place automatically.
However, there are other theories as to how this happened. “One of the theories is that Bitcoin has risen as a result of an April fool’s joke. A news site wrote that the American SEC has approved a Bitcoin ETF. That could be the possible reason for the climb.” Lam explained another cause: “Or it could be that someone bought a lot of Bitcoin in a short time and that there was a domino effect among buyers.”
Brexit the cause?
Politics can also have an influence on the share price. There were rumours on the Internet that the rise in Bitcoin’s share price could be related to Brexit. Due to the uncertain political situation in Great Britain, many Britons would buy Bitcoin. Lam also discussed this theory in the interview. When the journalist asked what he thought of the explanation, he said: “Your assessment is as good as mine.
So nobody knows exactly why the share price has risen so suddenly. Nevertheless, the sudden rise in the share price is good news for the crypto scene. Bitcoin is currently traded at a price of around $5000.