A Wild Weekend For Bitcoin, Converted The Theory Of An Efficient Market Inside Out

  • Bitcoin’s market price spikes to nearly 40,000 USD; this mind-boggling rise has created tension in the market.
  • Some significant factors have shaped this colossal spike of Bitcoin, like working at times when Wall Street is at a weekend holiday mode. 
  • Many dignitaries of the stock market have started to question the volatility and the future of BTC, and many people have many viewpoints that they add as an explanation to BTC’s surges. 

It has been one of the most happening weeks for Bitcoin, making a record of surging over 40% in a week. All the people who expected Bitcoin’s volatility to take over this weekend were set-back. Expecting weekends to be a rest for the crypto market, Bitcoin instead had gone nuts. Recalling the first weekend in the year, 2021, which was stretched between 2-3rd January, Bitcoin’s price rose by 24%, which was when a significant part of Wall Street was still enjoying resting in their weekend mode. Bitcoin is not just a crypto giant who trades all day, but works when the market sleeps, i.e., after hours. 

Factors Which Paved Bitcoin Path Into Huge Success

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The Castle Island Ventures, crypto venture partner, Nic Carter quoted:

“People always tout Bitcoin as 24/7, 365 liquidity, but what that actually means is you have periods of very thin liquidity.”

“If you want to deploy 500 million US Dollars of Bitcoin, you probably want to do it during core banking hours.”

A few factors affected the actual volatile spikes in Bitcoin’s prices. These include – around 95% of Bitcoin’s overall supply is overseen and controlled by 2% of all the accounts. If these giants start trading at times of calmness in the market, it will lead to a magnified swing in bitcoin’s supplies. Added to it are the disconnected market exchanges made by Bitcoin, which provides it with higher liquidity levels in the market and its prices. The CSO of CrossTower, Greg Bunn, mentioned that the market is hugely disintegrated into pieces from the point of view of infrastructure. 

What DO Important People Of The Markets Have To Say About BTC’S Volatility

A man who had worked for several decades with stock giants like Deutsche Bank and Citadel said that companies in the market work under several philosophies and differentiated standards, amidst all these still lack the position of a centralized market structure. He quoted:

“If you think about the structure that makes it conducive to things that are going to be very volatile and where you are going to have big moves. That is obviously going to be impacted by when people are awake, when they are trading and when they are watching the markets.”

Catherine Coley says that, if the number of buyers is lesser than the number of sellers or the other way around, that will create difficulty in making efficient transactions. And these are the situations which lead to either a massive spike in the prices or a fall. 

The Underlying Theories Behind BTC’s Spike In Prices

The founder of Quantum Economics, Mati Greenspan, quotes the following words:

“We are breaking through the barriers at a breakneck speed, this entire move from 10,000 USD to 40,000USD, this is mind-blowing and I am saying this as someone who witnessed 2013 and 2017 – it is just much bigger.” 

It is not exactly known as to what is the basic theory behind Bitcoin’s high rise in prices, although many recognized personnel in the market have several viewpoints and add-ons to the explanations behind Bitcoin’s spikes in prices The trading volume of Bitcoin has recently hit a record value of 80 billion US Dollars. This amount is still expanded at an exponential level every week. 

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Ritika Sharmahttp://www.thecoinrepublic.com
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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