We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
  • Poll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/Ft0ExAmMpq
  • #Dow Jones hits record high, however, central bank liquidity prompts volatility implosion. #FTSE 100 among underperformers with focus remaining on politics. Get your #equities market update from @JMcQueenFX here: https://t.co/EOFleGSeBp https://t.co/ecAyfSUeAM
  • RT @C_Barraud: 🇪🇺 #ECB’s Muller Says More Assets Could Join Stimulus List in Slump - Bloomberg https://t.co/roGEgu0VTQ
  • With increasing volatility in weather patterns, how might storms, hurricanes and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Find out from @JStanleyFX here:https://t.co/O4dgBl47fq https://t.co/OQYqZAYt9S
  • Currency Strategist,@PaulRobinsonFX is a Swing trader. What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/WzRYeqRhUL
  • Despite what your #tradingstyle is, you should be keeping a trading journal. How can you start keeping a trading journal? Find out: https://t.co/0akgWbyJEw https://t.co/4ehMlN4zv1
  • The Euro’s struggle to move higher against a range of currencies continues and without further support this is likely to continue into the year-end. Get your $EURUSD market update from @nickcawley1 here: https://t.co/myZ7R0eGUb https://t.co/12WJd53Cx4
Bitcoin Surges By 22%, Tops  $5000 In Reminder of 2017's Volatility

Bitcoin Surges By 22%, Tops $5000 In Reminder of 2017's Volatility

2019-04-02 06:27:00
David Cottle, Analyst
Share:

Bitcoin Price Surge, Talking Points:

  • Bitcoin suddenly added more than 20% in the middle of Tuesday’s Asia Pacific trading session
  • The reason behind the move remains elusive, with little happening elsewhere in the markets to give a clear lead
  • All cryptocurrencies made gains, but Bitcoin was the stand-out leader

Want to know more about Bitcoin and other cryptocurrencies? Try the free DailyFX Guide.

Bitcoin prices surged during Tuesday’s Asian session, briefly reaching the $5,000 point before heading back down.

The world’s biggest cryptocurrency had risen by more than 20% on the day at one point, to levels not seen since November 2018.

Back to the Past? Bitcoin Prices, Daily Chart

There was no immediately obvious explanation for this astonishing leap, which came in an Asian session of modest gains for local stocks and a return to winning ways for the US Dollar as Stateside yields rose.

Days with price changes of huge magnitude have been rare for cryptocurrencies in 2019 but were far more common during the breakneck trading days of their epic rise and fall two years ago. Whatever the eventual reason behind Tuesday’s surge it will serve as a perhaps overdue reminder that Bitcoin remains subject to the sort of volatility and speculation which render its utility as a currency so minimal.

After all, who’d ever spend a Dollar if they thought it could be worth 20% more tomorrow? Who’d hold one if they feared it could be worth 20% less by supper time?

And Bitcoin still commands a fraction of the prices reached back in December 2017 when it climbed as high as $19,600 to post its record high. Within a year it was trading below $4,000.

Bitcoin certainly outperformed other cryptocurrencies on Tuesday, but there were strong gains to be seen across the complex, with gains of over 10% seen for the likes of Ether and BitcoinCash.

At the time of writing 0600 GMT Tuesday, Bitcoin was looking pretty comfortable close to its new peaks, having only retraced as far as $4718. It will be incredible if the majority of these gains hold through the remainder of the global trading session. The crypto space will repay close watching for the next several hours.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.