Bloomberg: The Recent Bitcoin Renaissance May Be Because Of Algorithmic Trading

The latest cryptocurrency news bring us a report from Bloomberg which indicates on the current Bitcoin breakout – possibly linking it to algorithmic trading.

According to the official report published on April 3, algorithmic trading is basically a method that uses automated software in order to detect trends and determine when specific trades should be made. This form of trading has been on the rise over the past few months, according to Bloomberg.

The industry has seen about 17 new algo or quantitative funds launched since September – which is an amount that comprises 40% of the crypto hedge funds started during the same period.

And while crypto funds lost more than 72% due to the 2018 bear market, the algo funds reported on gains in the range of 3% to 10% per month even during the dubbed crypto winter. As Bloomberg states, Bitcoin’s unexpected 20% rise this Tuesday and shortly after the Asian markets opened, might be provoked by a $100 million trade that was made on three major exchanges.

According to experts close to Reuters, a 20,000 BTC order (approx. $100 million at press time) was spread across the US-based crypto exchanges Coinbase and Kraken, as well as Luxembourg’s Bitstamp. The giant order triggered the bots to start trading, thereby forcing the prices and volumes to rise.

As some entrepreneurs quoted in Bloomberg’s report indicate, algo trading can trigger market manipulation and trick other traders. Others think that the phenomenon will have a positive impact on the crypto industry – leading the market to new growth.

Meanwhile, Bloomberg is staying positive on a potential rise and has issued a series of articles and TV spots citing the possible reasons behind the visible market uprising. Another reason cited by the financial media outlet is the upcoming question of Brexit which led some to believe that investors are changing pounds to BTC in the wake of Britain’s breakup with the EU.