Bitcoin Market Bounce Linked To Algorithmic Trading

The most recent bitcoin's market bounce could be connected to Algo (Algorithmic) trading; many credible sources were writing on, April the 3rd.

The algorithmic trading method is a system which employs an automated software program to recognize trends and define when entry trades should be executed. This latest phenomenon trading style has been on the climb in the last several months, according to credible sources. 

The crypto sector has seen seventeen (17) different Algorithmic or quantitative funds originated since September of the last year, a number that purportedly includes 40% of crypto currency hedge funds commenced throughout this time frame.

Although crypto currency funds, in overall, shad around 72% due to the last year severe bearish market, these Algorithmic trading funds reached on gains within 3 to 10% per month throughout the so much dubbed crypto currency wintertime.

Bitcoin Market Manipulation

The sources state that Bitcoin’s stunning 20% spike price on, April 2 (Tuesday), soon following the Asia-Pacific markets began, may have been stimulated by a $100 Million Bitcoin trade executed on three (3) major exchanges.

Many experts told Reuters, a 20,000 Bitcoins trading order (about $100 Million at the time) was cast across North America-based crypto currency exchanges such as Kraken and Coinbase, and also Luxembourg’s Bitstamp exchange. Generated by the massive order, so the bots could suddenly begin trading, pushing the coin prices and trading volumes to grow.

Many entrepreneurs cited by major news agencies believe that Algorithmic trading will have a very positive influence on the crypto currency segment. Malta-based Binance exchange - Wei Zhou, Chief Financial Officer, tells that they are working on to be the brand-new rock stars of the crypto sector.

Meantime, others dread that Algorithmic trading will trigger crypto market manipulation. The Los Angeles based Ikigai crypto hedge fund founder Travis Kling explained that some of the Algorithmic trades are fake orders to fool other crypto traders.

Bloomberg business and markets news has published many articles and aired TV spots calling the possible motives behind the apparent crypto market ascent. For example, Bloomberg senior author Eric Lam recollected an April 1 (April Fool’s Day) story which alleged that the US Securities and Exchange Commission had ultimately passed a Bitcoin ETF (Exchange Traded Funds) as possibly influencing the crypto currency markets. 

The different speculation also cited by Bloomberg is the forthcoming proposal of Brexit, as many think that traders and investors are turning British Pound to Bitcoin in the wake of the U.K.’s split with the European Union.



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