The number of active Bitcoin [BTC] wallets increased in the two weeks which lead to the cryptocurrency hike recently. The New York headquartered media giant Bloomberg reported on April 3.
Bitcoin surged to nearly 5 months high. All other major cryptocurrencies have faced a surge ending three months of calm in the $160 billion market and some seeing a major one week growth.
The price of bitcoin hiked gaining more than 14 percent in the market on Tuesday. The cryptocurrency peaked above $5,000 according to CoinMarketFeed stats, before dropping slightly. At the time of press the cryptocurrency was seen trading at $5,021.
According to analysis report from market intelligence firm Flipside Crypto’s analysis a high number of digital wallets holding bitcoin became active two weeks prior the cryptocurrency market rally.
The report by Flipside Crypto suggests that from the past one to six months 40 to 50 percent of all Bitcoin had been held in digital wallets that were inactive and since March 15, the average has been 10 percent according to the official data.
Stone further explained that the sudden price movement in the cryptocurrency market is usually caused as a result of the interest in cryptocurrencies from a few large holders. The recent movement reminds the case last fall when Bitcoin hiked 40 percent. The only difference is that this time many smaller investors are “waking up.”
On April 3, the media Bloomberg reported that the recent crypto market surge could be connected to algorithmic trading, which is a technique that utilizes automated software to analyze trends and determine when trading should be performed.
Bloomberg has released a series of articles highlighting the possible causes behind the notable market surging. For instance, Bloomberg author Eric Lam claims that the reason behind the price surge of bitcoin and crypto market might be because of U.S. Securities and Exchange Commission approving a bitcoin ETF.
Bitcoin crossed the $5,000 price mark and is on the hike for the third day in a row. The coin is currently trading at around $5,021.