© Reuters. FILE PHOTO: A sign with the French start Keplerk, for customers of purhcase bitcoins, is seen in a tobacco shop at Rueil-Malmaison
By Tom Wilson and Tommy Wilkes
LONDON (Reuters) – burst to its highest level for almost five months on Tuesday, sends less cryptocurrency up, with analysts ascribing the move to a big order by an anonymous buyer who triggered a run of computer-driven commerce.
The original and largest crypto competition increased as much as 20 percent in Asian trade, exceeding $ 5,000 for the first time since mid-November. By mid-morning, it had settled on about $ 4,800, still up 1
Bitcoin increased to close to $ 20,000 by the end of 2017, the top of a bubble driven by retailers running cryptographic rates on the regular financial companies agenda. But great interest decreased when prices collapsed, and now trading is mainly traded by smaller hedge funds, technology companies and wealthy individuals.
Oliver von Landsberg-Sadie, head of the London based cryptographic course company BCB Group, said the move was likely triggered by an algorithmic scheme that valued approximately $ 100 million in major exchanges – US-based Coinbase and Kraken, and Luxembourg-based Bitstamp.
"There has been a single order that has been algorithmically managed over these three arenas, around 20,000 BTCs," he said.
"If you look at the volumes of each of the three exchanges – there were interconnected, synchronized volumes of about 7000 BTC in one hour".
For a graphic on the Bitcoin price, see – https://tmsnrt.rs/2VadrPe
Outsized price movements of the kind that are rarely seen in traditional markets are still common in cryptographic markets where liquidity is thin and prices are very opaque .
So orders of magnitude tend to spark the purchase of algorithmic traders, says Charlie Hayter, founder of the industry site CryptoCompare.
As bitcoin increased, there were 6 million transactions over an hour, Hayter said three to four times the usual amount, with orders concentrated on Asian-based exchanges.
"You trigger other order books to catch up, and it creates a buying environment."
Bitcoins surplus sent smaller cryptographic courses, called "altcoins", higher trade. Ethereum's ether and Rippel, respectively, the second largest and third largest coins, both jumped by more than 10 percent.
Price movements with smaller coins tend to be correlated with bitcoin, which still accounts for just over half the value of the cryptocurrency market.
"Usually bitcoin is the market leader and altcoins tend to follow, in terms of direction and feeling," says Mati Greenspan, an analyst at e-Toro in Israel. "Today bitcoin is in the driver's seat."
The markets for cryptocurrency have been relatively calm so far this year, with bitcoin trade to today ranging from about 3,300 to 4,200 USD.
There have been few catalysts for large price movements of the kind seen last year. In 2018, the fear of regulatory clips and reduced interest from retail investors saw the bitcoin fall by about three quarters.