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Bitcoin soars 20pc, mystery buyer seen as catalyst

April 03, 2019 00:00:00


LONDON, Apr 02 (Reuters): Bitcoin burst to its highest level in almost five months on Tuesday, sending smaller cryptocurrencies up, with analysts ascribing the move to a major order by an anonymous buyer that triggered a frenzy of computer-driven trading.

The original and biggest cryptocurrency soared as much as 20 per cent in Asian trading, surpassing $5,000 for the first time since mid-November.

By late morning, it had settled at around $4,700, still up 15 per cent in its biggest one-day gain since April last year.

Bitcoin surged to near $20,000 in late 2017, the peak of a bubble driven by retail investors that pushed cryptocurrencies onto the agenda of mainstream financial firms.

But wide interest waned as prices collapsed, and now trading is mostly powered by smaller hedge funds, tech firms and wealthy individuals.

Oliver von Landsberg-Sadie, chief executive of London-based cryptocurrency firm BCB Group, said the move was likely triggered by an algorithmic order worth about $100 million spread across major exchanges - US-based Coinbase and Kraken, and Luxembourg-based Bitstamp.

"There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC," he said.

"If you look at the volumes on each of those three exchanges - there were in-concert, synchronised, units of volume of around 7,000 BTC in an hour".

For a graphic on Bitcoin price, see - tmsnrt.rs/2VadrPe

Analysts could not point to any specific news or developments in the cryptocurrency sector that could explain the mystery buyer's big order.


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