Bitcoin spiked to more than $7,500 on Sunday — a sharp rise from its $5,000 level at the start of May, and more than double its price in mid-December. Analysts have struggled to identify one single catalyst.
“With no major news factors behind the aggressive appreciation, the sharp $1000 jump over the weekend remains a mystery to investors,” wrote Lukman Otunuga, Research Analyst at FXTM, in a research note.
However, crypto-fans have weighed in with competing theories on its sudden rise, which run the gamut from compelling to wildly far-fetched.
Here are five reasons for the rise, according to Reddit users:
- Safe haven
“It’s possible that a great number of rich people know that the traditional markets are effed eight ways to Tuesday,” wrote diydude2 on the r/bitcoin thread’s daily discussion.
President Trump has sparked a global market sell-off after accusing China of walking back agreed provisions in a draft trade deal, hiking tariffs on $200 billion of Chinese goods, and preparing to expand tariffs to effectively all Chinese products in the next month if a trade agreement isn’t struck. Investors may have bought up Bitcoin to hedge their exposure to conventional assets.
- Mainstream appeal
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