Every time I read about Bitcoin, and listen to those hyping its investment potential and telling us it’s even better than tulip bulbs, I can’t help wondering if someone’s having a laugh.
I mean, why would the price suddenly jump on 2 April, from around $4,000 the previous day, and then hover around the $5,000 level for the rest of the week?
The big surge actually took place over a period of only about an hour, and there surely must be a reason. Mustn’t there? When something like that happens with a company stock, it’s almost certainly a result of some upbeat news. But of Bitcoin there was none. Or was there?
One suggestion is that the rally was sparked by an April Fool joke. According to the prank, the rational investing world had finally seen the light, and the US Securities and Exchange Commission had decided to approve the launch of Bitcoin-based exchange traded funds (ETFs). Not just one, mind, but two. This was serious stuff. Bitcoin was finally getting the recognition it deserved.
The 1 April story claimed that the Bitcoin price soared on the result to over $6,000, adding billions to the total value of the stuff. Of course, that wasn’t true, but the almost perfect echo the very next day did seem a little spooky.
The question of what actually did drive the rally has been puzzling traders all week, with various speculative reasons being touted. Some even suggested it might be down to…
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