Bitcoin Forum

Hello friends,

what happened tonight surprised me a lot. It is well known that crypto is very volatile and can grow by 20% in just a few hours. But the breakout of tonight was insane and I can not understand it. Thats why I like to start a discussion in which the causes and effects are discussed exactly. The BTC price was sky rocking in about 16h hours from 7400$ to 10400$ and with the BTC price almost all Altcoins were following the rally. In fact, the total crypto market capitalization increased from 206 billion Dollar to 262 billion Dollar!! More precisly,  56 billion dollars in 19h pumped into the crypto market !!



This is totally amazing and of course there are some questions:

- Where does the money come from? From institutions and banks? From large investors?

- Why do nearly all Altcoins quickly increase at the same time?

- On which exchanges can be trade so much money in such a short time?

- Who knows about such breakouts before?

- etc ...



In addition, BTC was in a downtrend before 24h and close to a DeathCross. The resistance was very strong and yet my short-possition was blown up like a nuclear war star and totally shredded. Of course everything is possible, but it is incredibly impressive how much money flows into the market in such a short time and apparently everything at the same time and with nearly all Altcoins.

I would be pleased if we put the reason for the understanding of the mechanisms in this thread exactly together.



Now I need to get some sleep to get a clear head again .. Thanks for answers!!

1. No idea

2. Because they follow BTC, and then there is some fomo.

3. Bakkt recorded highest volume.

China president appreciated blockchain technology, may be that was the cause.

Q: Where does the money come from? From institutions and banks? From large investors?
A: You are talking about the crypto market capitalisation, this is just the sum of (price of btc) x (amount of btc in circulation). This means that 56 Billion was not just pumped into Bitcoin in the last 4 hours. You can check trading volume on places like coinmarketcap.com.

Q: Why do nearly all Altcoins quickly increase at the same time?
A: Really nice article here (should answer your question): https://hackernoon.com/how-does-bitcoins-rise-affect-the-altcoins-b4f897cb2da9

Q:On which exchanges can be trade so much money in such a short time?
A: Pretty much all the major ones, Binance, BitThumb, Huobi, Bittrex etc

Q: Who knows about such breakouts before?
A: You can check coinmarketcap.com for a chart of the Bitcoin price over time.

the surge in bitcoin prices seems to be directly correlated with the comments of Chinese leaders, Chinese President Xi Jinping said his country must take the opportunities provided by blockchain, the technology that supports bitcoin, The price of bitcoin jumped, right after president Xi's comments about the blockchain were published in Chinese media.

first of all it is not "crypto" it is bitcoin that is rising and its rise is being falsely reflected over the entire altcoin market consisting of thousands of shitcoin that are trading against bitcoin but report their prices in USD!!!

secondly, it was very well expected to see a huge panic-y breakout like this when the price started reversing. in fact people were expecting this the day price fell below $10k that we are going to see a FOMO buy. the money is the same money that went out when price fell, it was "waiting" to enter as soon as reversal occurred.

that is wrong.
altcoins have never followed bitcoin, their value against bitcoin is actually declining. the reason why you see a rise is because sites like CMC are reporting the price in USD instead of BTC. all they had to do was not fall that much against BTC to show a rise in their USD value!!!

Some say this is the reason. And others don't but I think this is why bitcoin prices are sky rocket today. It has also coincided with the announcement of Chinese prisident Xi Jinping's acceptance of china on the blockchain which has helped bring big whales back.

This is trending news today and almost all of it is due to the statement of the Chinese president. This is definitely the start of Bull Run!

Wrong wording, that's what I meant.

The reason why bitcoin have experience a mega breakout including all crypto is because of people buying the news. The news was all about Chinas Xi Embraces Blockchain. This was the trending and viral news on the web and this has cause massive bitcoin buy orders to line up and have caused the market to spike. As of now the bulls are now enjoying as they expect bitcoin to recover more and climp up above 10k$.

I doubt president's statement has anything to do with the surge. It was about the potential of blockchain and no where in his speech he brought Bitcoin. Blockchain is separated from Bitcoin and has more utility than just being a currency. If you have noticed, the last dump came because of the underwhelming response of BAKKT. But now it has gained momentum. Yesterday, it recorded the highest volume is indicating towards the involvement of institutional investors.

Perhaps it is from the institutional investors, I doubt it was from regular Joe's deciding to finally make the big Bitcoin plunge.
  With bad news from the Senate facing Facebook's Libra project and with the ETF proposals being rejected left and right, I expected the market to stay in a slump.
  Do you think this jump is the result of a pump from whales?

Well, there were quite a few factors to take into account and I think that each one of them contributed to the upwards price squeeze. First of all the chinese announcement, then the death cross incoming which created a very bearish sentiment in the market and at the same time massive liquidity for the bulls. Then we've seen a massive spike in volume on Bakkt signaling institutional investors are making a move. Here's your explanation. :)

the only problem is that it is not actual "dollars" that are going in the market. it is only market capitalization which you are looking at and that is simply showing the ridiculously huge amount of altcoin supply that is currently in the entire market and none of them went up by people buying them with "dollar". the only thing that happened was that bitcoin went up so if anything you should only report bitcoin's market cap (although that still wouldn't make any sense) and that would be about 20 billion rise.

actually I don't know much about the bitcoin mega breakout which has gone up so high in just a few hours I think there is also a possibility because the Chinese president now supports blockchain technology in his speech so people who hear the news might be interested in investing in bitcoin.Because if we see now bitcoin greatly affects other altcoin prices very often we notice that the price of bitcoin goes up then other altcoins also go up in price.

I’ll go for the Chinese government announcing their support to blockchain technology, this is a good news and because of that whales are loving it because they know they can make huge profit on that. If we saw another dump then the recent pump is fake. We should stay beyond $10k, if we can’t then the bottom is still possible.

Possible people gearing up for brexit in a few days time I know of a lot of people who are converting there GBP to BTC now in preperation for the big fall of the GBP.

There are always many factors that can cause moves like this but my guess is world economic situation is becoming extremely dire. The finnancal experimantation of the west is about to catch up and cause pain the smart money is moveing to crypto-based assets and bitcoin.

I very much doubt that, tho it might have had some influence. 

My guess is that it had something to do with the trading on Bakkt.  Could be that the record volume was because of a lot of buy orders being placed on bullish options contracts or what have you.  I still don't understand what Bakkt is all about but I'm almost certain it has the potential to influence bitcoin's price.

Altcoins are priced in terms of bitcoin, so they generally move together (but not all of them all the time).  It's nice to see a little gain there as well.

We don't know, perhaps it come from any one of them.


Because Altcoins follows Bitcoin prices movement.


Usually top and reputable exchanges.


No one knows because we don't have crystal balls to predict some breakout.


The last time we crossed a Death Cross, bitcoin also made a significant gain. So perhaps it's just a coincidence or just people FOMO'ing resulting in a massive spike in the price.

It's a very good surprise to me
Everyone was talking about bear market, bad news etc and them I saw the prices when I woke up and boom, 15% more in a night  ;D

The BTC continues to surprising me everyday and there's no way to predict

We have no clue about this money invested in BTC suddenly, I'll try to search

Everyone else thought that this was the main reason though I believe this is just an overstatement of what really happened. There are a lot of factors to be considered from what happened earlier, and it's just not the statement of China's president. It could have been a mistaken buy order and stemmed from there up to the different exchange platforms until such time that it created a chain reaction on all fronts. Bakkt is also not the sole reason as some also claim. There's just so much angle to look at that it's so hard to lock the reasons to a single one.

I am sure they are coming from the many whales just waiting for the opportunity to "manipulate" the whole Bitcoin market. However, there is nothing wrong with that. Had it not been to them, we would not have this flash rise of Bitcoin. Large investors and institutional money can be part of the "whaling industry" (just kidding). I am doubting on banks, though (but this is also debatable).



Bitcoin is considered to be the Mother of Them All and where the mother is going, the sons and daughters can be following. There is a strong correlation between Bitcoin and the alts that is when Bitcoin jump high a corresponding reaction became visible in the whole cryptocurrency market. Of course, this is not all the case but this is what happened with that "bull run" labeled as Bitcoin's 4th largest so far.



All big exchanges can handle such big volume of transactions, I think. Just go ahead and search for them and since the top exchanges are all well-known you can easily get which are the whales' favorite play ground.



This is the first time that it happened nor will be the last. Just search for the history of Bitcoin's trading and you can analyze in there. Next year, we are preparing for a much bigger and the real bull run, hopefully. We are all hoping 2020 can be another 2017.

Most of the people think that cause of this sudden rise in prices is due to statement of China's president relating to adoption of blockchain technology in their system which boosted the investmemt and huge investments were made increasing the prices but for me more important is that after such a long period we have seen such huge pumps and prices are over $9500 and rally was seen in altcoins also and now we will see bull run in the market.

Well, I know one thing for sure... I will look closely to what is happening with the Bakkt trading volume in the future. Those guys somehow got some inside knowledge that the Bitcoin price is going to skyrocket, because we saw a 600%+ increase in the Bakkt trading volume, just a day or two before the price spiked.

The people seem to forget that it went down with over 80% from the all time high of 2018, so a 20% increase is not a huge thing for most of the people who bought at the all-time-high.  ::)

There are different reasoning from different people/experts. But there isn't any specific reason for the breakout. The earlier fall came from the news of quantum computers. People are saying Xi Jinping comment on blockchain was a reason but that was specifically about blockchain and bitcoin wasnr mentioned anywhere. I doubt that to be a reason for the pump. Many are saying that volumes were fake. I think it is more of manipulation from the big players as no new money entered the market.

Fomo is not the reason for the value of BTCitcoin going down and then rising in a short period of time, you already mentioned that Bakkt recorded a record volume and so does the rest of the future market, so it is evident that the future market is behind these crazy breakouts

The Chinese president appreciated blockchain technology but it can be used to monitor each and every transactions and they will adopt the blockchain without thinking twice but it has nothing to do with BTCitcoin and that is the difference, so these volatility has nothing to do with these market events.

OP, I can feel your excitement by just reading your post.
But everyone's been talking about this. Primarily the reason why there's a sudden surge is when the president of China give a statement being positive about blockchain technology, and the plan of creating their own cryptocurrency. We don't know if that's actually the reason but after the Chinese president stated it, the price suddenly went up so everyone's assuming that it's the cause.