Bitcoin price has gained this week but what’s behind the move? | Source: Shutterstock
This week brought a small reprisal for bitcoin price and the broader cryptocurrency market as it witnessed $20 billion added to its total market cap by late Tuesday.
This was also reflected by an approximate 10% gain for BTC alone; so what was behind the rise?
In somewhat atypical fashion, the week started on a good note, with bitcoin swelling by $700. Interestingly, this coincided with the close of the Chicago Mercantile Exchange (CME), which had shut down trading for Labor Day. The phenomenon of BTC volatility during a close of the CME is now reasonably anticipated by the crypto market.
Speaking to CCN, popular cryptocurrency trader, Alex Kruger, explained why this event occurs, and whether or not it attributed to the rise of BTC:
An exchange closing, while the rest of the market is open, exposes traders in the closed exchange. The market getting going after the CME closes has been a recurrent pattern in 2019. Note CME volumes only picked up in 2019. That said the CME closing is not a catalyst per se.
Instead, Monday’s move was “likely driven by the Van Eck bitcoin trust news leaking,” Kruger argues, caveating that this is “simple speculation,” and therefore “impossible for anyone to be certain besides the ones behind the flow.”
The Bitcoin ETF Narrative
Indeed, this week also brought some ostensibly bullish news regarding VanEck’s production of a “Limited ETF.” On Tuesday, speculators arose to an additional $450 pump from BTC. Many attributed this rise to VanEck’s quick-witted spin of SEC rules,