The new year has kicked off on the right foot for Bitcoin investors. The currency has continued with its rally, gaining $375 since the year turned. In the past 24 hours, the currency has gained 6.5 percent, finally hitting the $4,000 level again. The last time Bitcoin hit this level was December 25, after which it went down all the way to $3,650. The fightback is certainly noteworthy, but according to some analysts, it’s not yet time to pop the champagne.
The 6.5 percent surge happened in 30 minutes. This could indicate that it was as a result of a one-time market move, such as a whale moving their crypto holdings. It could also be as a result of reduced liquidity in the crypto markets. This is according to Mati Greenspan, the renowned crypto markets commentator who also serves as the senior market analyst at eToro. Mati’s sentiments are supported by crypto VC guru Chris Burniske who believes retail investors have forgotten about Bitcoin. According to him, the hype experienced a year ago has died down and most people are moving on to other opportunities.