The price of Bitcoin spiked on Tuesday topping out at nearly $7,500. The price suddenly surged more than $600 in a 30 minute span, marking the highest the cryptocurrency has been in more than a month. Following suit were Ethereum and Bitcoin Cash, which also saw a 10% increase in value. Within an hour, the cryptocurrency market had moved from $272 billion to $292 billion, an increase of $20 billion.
Speculation abounds as for the reason of the spike. Typically, volume precedes price and Bitcoin volume reached a 3-month high yesterday. There have also been several cases of institutional money entering the space.
It was reported this week that BlackRock, the world's largest asset manager, has set up a working group to look into blockchain technology and cryptocurrencies. CEO Larry Fink however, has stated that he does not see a "huge demand for cryptocurrencies." Hedge fund billionaire Steve Cohen is also moving into the space according to Fortune. His firm has invested in Autonomous Partners, which is a hedge fund that acquires cryptocurrencies.
Last week, cryptocurrency exchange Coinbase announced they had received approval from the SEC to trade in securities. Since then, they have retracted their statement and say they have not received any regulatory endorsement. All of these things may have been contributors to the spike in BItcoin price. It remains to be seen if this was merely a price correction or if this is the beginning of a new bull market.