After a hellish 12 months, the crypto market saw its big one-off surge of 2019 on Friday. All of the top six coins increased significantly in price, with Litecoin (LTC) in particular thriving.
As always when something like this happens, traders ask themselves one question: Why?
Was Bakkt behind the boom?
Is it any coincidence that Bakkt released its only tweet of the month so far on the day crypto boomed? The announcement of a partnership with Rosenthal Collins Group was big news for a crypto world starved of positive signs, and it seems the market has reacted accordingly.
With today’s closing of our transaction with Rosenthal Collins Group, we welcome great new team members to Bakkt
RCG’s remarkable heritage, culture and expertise will help us build out a trusted institutional infrastructure for digital assets pic.twitter.com/KuqJjzMfCx
— Bakkt (@Bakkt) February 8, 2019
Data from CoinMarketCap suggests BTC was performing solidly all day, having begun its rise around 8:15 am on February 8. The price continued on a steady upward trajectory, with a further boost occurring around 3:30 pm UTC. At this point, BTC’s price had risen about US$80, from $3420 at midnight to $3500.
We can’t give Bakkt credit for that rise. After all, it didn’t publish its tweet until 4:15 pm UTC. However, the major spike of the day coincides almost exactly with Bakkt’s announcement.
From 4:15 pm until 5:00 pm UTC, BTC’s price grew by almost $200 to a daily high of $3691. Over the past few days, the price has corrected slightly and now appears stable at around $3650.
It’s perhaps more interesting to note the effect of Bakkt’s announcement on overall market capitalization. In that same 45-minute period, the crypto market as a whole gained around $6 billion, rising from $116 billion to $122 billion. Not bad for a single tweet!
Is the market less mature than we thought?
After the craziness of 2017 and the bear market of 2018, many analysts had thought crypto’s most volatile days were behind it. Surges like Friday’s – on the back of a single tweet – cast doubt on that opinion.
Some have hailed the one-off surge as a sign that the market is turning bullish once again. But the reality is that, three days later, we’ve yet to see any further increases of note.
This situation poses another interesting question: Did Bakkt choose to tweet its announcement on Friday afternoon because prices were already going in the right direction? Or was it simply a coincidence? Whatever the answer, the result is great publicity for Bakkt and gives crypto enthusiasts some much-needed hope.