CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$24,095.00
  • ethereum
    ETH$1,683.14
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » 3 Possible Reasons for Bitcoin’s Surge Above $47K

    3 Possible Reasons for Bitcoin’s Surge Above $47K

    Author: George Georgiev

    Last Updated Apr 1, 2022 @ 08:10

    Bitcoin is trading above $47,000 for the first time in three months. Here are three possible reasons for it.

    Much has happened in a relatively short period of time. In the past seven days alone, Bitcoin’s price exploded to a 3-month high, tapping levels that we hadn’t seen since January 2nd.

    This adds to a total increase of around 14% as Bitcoin traded above $47,000 earlier today. The entire cryptocurrency market cap surged by a whopping $120 billion in the past 24 hours, and we take a closer look at three potential reasons for the recent gains.

    Terra Buying Bitcoin

    It goes without saying that Do Kwon’s Terra seems to be the primary catalyst for the recent increase in Bitcoin’s price as their BTC buys keep coming in.

    As CryptoPotato reported earlier last week, Do Kwon – the co-founder and CEO at Terraform Labs – the company behind the Terra protocol – revealed intentions to buy a whopping $10 billion worth of Bitcoin over time. While many didn’t take this seriously, Kwon also said that they “have $3B funds ready to seed this reserve.”

    $UST with $10B+ in $BTC reserves will open a new monetary era of the Bitcoin standard.

    P2P electronic cash that is easier to spend and more attractive to hold #btc

    — Do Kwon 🌕 (@stablekwon) March 14, 2022

    Not a few days later and the Bitcoin buys started rolling in. Terra has been buying in batches of $125 million, prompting some analysts to believe that there’s an incoming supply shock.

    This brings us to reason number two.

    Supply is Getting Thinner

    Commenting on the above was popular cryptocurrency proponent, and industry commentator Pentoshi, who outlined the following in relation to Terra’s Bitcoin buys:

    2.5-3k BTC per day of supply removed over a long period of time = huge impact. Those who are short have to cover higher at some point as supply itself dissipates. What is scarce, becomes more so. This clip can bring back the apes, in which Do Kwon is the lord of the Apes.

    In essence, what the analyst is talking about is the concept of a supply shock where the demand heavily outweighs the supply, essentially squeezing the price up.

    In addition, market data showed that bears were underprepared for this move. As we reported earlier today, Bitcoin’s volatility wiped over $410 million worth of liquidations in the past 24 hours, and about 80% of these were short positions.

    Overall Market Sentiment Turned Positive

    Bitcoin, as well as the entire cryptocurrency market by extension – remain largely correlated with Wall Street, as much as native proponents would like to detach.

    Over the past five days, some of the largest indices in the US – including the S&P 500, Nasdaq, and the Dow Jones Industrial Average – are all trading in the green.

    What is more, tech companies like Tesla are also charting considerable gains. TSLA stock is up for the 9th consecutive day, increasing by a whopping 35% in the same period.

    TSLA_2022-03-28_13-41-33
    Source: TradingView

    This might mean that investors become more prone to the risk-on trade, and Bitcoin fits right into the definition.

    All in all, it’s important to remain very careful as the price currently hovers around the yearly close, and last time it was unable to come through, although it came pretty close.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    Tags: Bitcoin (BTC) Price Tesla
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    George Georgiev
    More posts by this author

    Georgi Georgiev is CryptoPotato's editor-in-chief and a seasoned writer with over four years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn

  • bitcoin
    BTC$24,095.00
  • ethereum
    ETH$1,683.14
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!