Bitcoin pauses after sharp rise
On Friday, the price of cryptocurrencies rallied, with most of the currencies having their best day this year. Bitcoin and Ethereum reached a high of $3695 and $125 respectively. The cause of the sudden jump was not known although most traders observed an increase in Bitcoin’s hash rate, which reached a three-month high. The hash rate is a measure of the performance of miners, with a high hash rate being better for the market.
The sudden rise in the price of cryptocurrencies came as the industry is still coming to terms with the disappearance of currencies worth more than $150 million from a Canadian exchange. There have been doubts whether Gerald Cotton, the CEO of QuadrigaCX died or whether he faked his own death as an exit strategy. According to Bloomberg, a number of external experts brought to asses the situation have found gaps in the explanation offered by Quadriga CX. For example, while the statement said that the currencies were in a cold storage, the CEO of Kraken has said that they have coins owned by the company. Investors will continue to watch out for this news as well as the regulations that are likely to come because of it.
After Friday’s jump, the price of Bitcoin has struggled to remain on those levels and is currently slightly lower. The currency is now trading at $3570. On the four-hour chart, the price is slightly above the 28-day and 14-day EMA. The price is also much lower than the important support of $4000. With no major news, there is a likelihood that the pair will continue moving lower to Friday’s levels of below $3400.