Bitcoin spike blamed on an April Fools' joke — but that's not why it rallied

Bitcoin spike blamed on an April Fools' joke — but that's not why it rallied


  • A series of wacky bitcoin theories surfaced Tuesday that some attributed to its rally to $5,000.
  • Rumors that trading algorithms picked up reports of bitcoin ETF being approved. But experts say that’s not the real catalyst.
  • “It’s absurd to believe this market move is the result of confusion about the Bitcoin ETF filings,” says Hunter Horsely, who is in the process of applying for a bitcoin ETF.

Bitcoin wasn't immune to April Fools' Day jokes.

One prank in particular got some credit for boosting the price of the world's largest cryptocurrency. After bitcoin broke above $5,000 on Tuesday, its highest level of the year, some blamed trading algorithms designed to buy or sell based on news. As some speculated, robots triggered a buying frenzy after an April Fools' Day article by Finance Magnates outlined an "emergency meeting" by regulators over the weekend to approve a bitcoin exchange-traded fund.

But multiple experts say the buzz was not responsible for bitcoin's recovery. Hunter Horsley, whose company Bitwise was mentioned in the April Fool's Day report, said there was no truth to the ETF rumor.

 

"It's absurd to believe this market move is the result of confusion about the Bitcoin ETF filings," said Horsley, CEO of Bitwise, which is in the process of applying for the first-ever bitcoin ETF. "Though ETFs and April Fools are topical, there are lots of reasons this is an unlikely explanation."

The most likely explanation, he said, is a Reuters report of a private buyer purchasing more than $100 million worth of bitcoin over a short period. Given the small daily trading volume of bitcoin, "that order would be enough to have an impact," he said.Read more






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