Breaking: Bitcoin’s Sudden Surge Propels Crypto Markets Higher

It took bitcoin less than 30 minutes to go from $9,400 to $10,400 on Thursday. The sudden rally breathed new life into the cryptocurrency market, proving once again that altcoins and tokens continue to revolve around King BTC.

Bitcoin Rallies

In the span of about an hour, bitcoin’s price pierced through $10,000 en route to a session high of $10,483.96, according to Bitstamp. The largest and most influential cryptocurrency was last seen hovering below $10,400, having gained 7%. It was merely a few hours ago that bitcoin was testing $9,400 after suddenly losing momentum through the early morning session.

While there was no immediate catalyst for the outburst, the challenge now for the bulls is to maintain the five-figure level. A failure to do so could see BTC/USD re-test the $9,000 support. Any breakdown below this level would lead to a more punishing reversal, possibly to the mid-$7,000 range.

Cryptocurrency analyst Alex Kruger provided some insights into bitcoin’s latest move, claiming that “no technical analysis could have predicted that short squeeze until it was already half way under way.” Kruger said bitcoin appeared to be in the hands of the bears yesterday before they got ran over just now.

Crypto Markets Follow Bitcoin Higher

Where bitcoin goes, altcoins follow – at least, that has been the trend since the 2019 bull market began. The altcoin asset class added roughly $6 billion to its market capitalization in the last hour.

All major coins were reporting firm gains, according to CoinMarketCap, which measures price changes over the past 24 hours. Ethereum rose 5.3% to $223.46. The second-largest cryptocurrency by market cap plunged below $200 on Wednesday, culminating a brutal monthlong reversal.

XRP’s price was back above the 32-cent mark, rising 3.2% to $0.3220.

Litecoin was the top performing major percentage-wise, gaining 9.8% to $97.54.

Meanwhile, bitcoin cash rallied 4.6% to $309.93, EOS added 3.7% to $4.11 and Binance Coin jumped 6.1% to reach $28.90.

The total cryptocurrency market is now valued at $281 billion, having recovered more than $30 billion from its most recent low.

Analysts say the market’s short-term outlook could be dictated by U.S. Congress, which is investigating centrally-managed assets like Facebook’s Libra. The fear is that lawmakers will try to lump bitcoin in with Libra despite not bearing any resemblance to it.

While the U.S. Securities and Exchange Commission (SEC) has already deemed that bitcoin is not a security, Treasury Secretary Steve Mnuchin has warned crypto holders that the White House is pursuing “very, very strong” enforcement mechanisms.

“We’re going to make sure that bitcoin doesn’t become the equivalent of Swiss-numbered bank accounts, which were obviously a risk to the financial system,” Mnuchin told CNBC on Thursday.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Charts via TradingView and CoinMarketCap.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi