Bitcoin Climbed Up to $8,000 Ahead of The Tax Day

Bitcoin Climbed Up to $8,000 Ahead of The Tax Day

For the first time within a month, bitcoin managed to surpass the margin of $8,000 on April 12, as per cyber money trading bourse Coinbase. The “king” of cryptos unexpectedly crept by over 17% to that rate, setting a new course on the price-changing line.

Finally Recovering… Again

2018 has not been the best year in terms of volatility for bitcoin so far, and there are lots of factors which influenced that. For instance, as the primary cause for BTC’s price drops, this year could be the uncertainty over digital assets regulation all over the world, cyber-attacks scandals, as well as scalability problem and more.

Since reaching the all-time high of $20,000 in mid-December 2017, bitcoin never got back to that position. (At that time it gained 2,000% in value within the past year.)

On the contrary, it fell to previous lows of $6,000 at the beginning of February 2018. It kept shedding value on the upcoming US tax day, which is April 17.

Having fluctuated for quite a long time, BTC finally has shown signs of semi-recovery. Surprisingly, the most valuable virtual currency climbed to the rate of $8,011 on Coinbase, as CNBC noticed.

At nearly 7.30 PM UTC, this currency demonstrated the growth of 11.5% within the past 24 hours, being traded at $7,700 as per Coinbase. It is noteworthy that on April 12 morning the coin was traded at only $6,786.

No More Restful Nights For Traders

The unexpected leap from bitcoin made crypto-traders to go beyond status-quo. Brian Kelly, who is the leader at BKCM, a company that runs cyber assets tactics for customers, said:

"Once [bitcoin] broke higher, shorts were squeezed and forced to cover."

In his turn, Nick Kirk, who is quantitative dev and data scientist at a cyber-money trading firm Cypher Capital, said the following:

"The ratio of short margin trades versus longs has been increasing recently. Buying volume ticked up today, and a lot of these short trades got liquidated, helping fuel the rally."

According to the BTC investor Ansel Lindner, the sudden increase in bitcoin’s rice has also been caused by the tax day. Particularly, he said:

"I think it's just some pent-up market movement, […] [there’s] some relief in the selling [before the tax day.] Even though the price has been going down lately, the development of the next generation bitcoin infrastructure hasn't stopped.”