Find the best broker for your trading or investing needs Proponents of bitcoin claim the price surge could be the start of a bull run, similar to the one that occurred in the latter half of last year when the cryptocurrency’s price rose to almost touch $20,000. According to Brian Kelly, founder and CEO of BKLM LLC – a crypto-focused investment firm, big sellers have exited from the cryptocurrency ecosystem. “There were a lot of big sellers out there,” he told CNBC.
He may have a point. The drawdown in bitcoin prices has been triggered by large sales by bitcoin whales, or investors with large tranches of bitcoin holdings.
For example, a February dive in bitcoin prices has been ascribed to the sale of bitcoin stash by a former trustee of Mt. Gox, the Japan-based cryptocurrency exchange which crashed in 2013.
(See also: Bitcoin Bloodbath: Price Nosedives; $53 Billion Wiped Off Marketcap). Bitcoin’s dominance rate in cryptocurrency markets has also increased. The rate is a function of bitcoin’s trading share of the overall cryptocurrency markets.
The more investors trade using bitcoin, the higher it is. For most of this year, traders have diversified their holdings into other cryptocurrencies, even during periods of price increases for bitcoin. Read more from investopedia.com…
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