One of the reasons behind the current break in Bitcoin price through the $1,300 range would be the cryptocurrency trading platform Poloniex recent announcement that they are delisting some 17 altcoins of the available 81.
At some point on Thursday, April 20, the trading price of Bitcoin touched the $1,328 mark on Poloniex but quickly reversed to slightly over $1,310.
Dana Coe of Bitlox doesn’t agree with the view that Poloniex may have manipulated these coins before delisting. He says:
“The allegations of Poloniex artificially “pumping” these coins prior to delisting them should be taken with a grain of salt, as many of these coins are of such a market cap or trading volume that just a few dedicated actors (not necessarily the exchange itself) can cause tremendous swings in value. It would appear that (to Poloniex at least) such swings are not a desirable trait for coins they want to list.”
Moving delisted altcoin funds into Bitcoin?
There has been a question about what would happen to the available Bitcoins on the altcoins that would be delisted effective May 2. Poloniex has neither provided any reason for the decision nor indicate whether other coins would be introduced instead.
What is clear is the grievances expressed by some of the platform’s users who claim they will have to move their assets elsewhere as they have lost money by the sudden announcement.
Based on this view, it is logical to think that some other users may choose to move their funds from the altcoins to be delisted into Bitcoin especially as May seems a very crucial month for the top digital currency going by information flowing around.
What might happen next
By May, it has been revealed that the committee recently constituted by India’s Reserve Bank to look into activities related to digital currencies such as Bitcoin will make its recommendations known between May 15 and 20.
Afterward, the Indian government would be left to decide on what to come next. It all seems good so far that the outcome would be positive and when that happens, there is definitely going to be a rise in Bitcoin price.
Also in the same month, the second round of the French election will be held on May 7. According to the trade view by the Head of Equity Strategy at Saxo Bank, Peter Garnry, markets are just breathing a sigh of relief with EURUSD and European equities higher.
This is because recent polls suggest the centrist Emmanuel Macron is gaining against Front National leader Marine Le Pen in the first round of the French election on Sunday.
Le Pen’s push towards a populist approach in one of Europe’s largest economies, France, has been a cause for concern.
Though a poll by JP Morgan had put Le Pen’s chance of victory at three percent in the first round, a win for her could have made the euro fall by about 10 percent to the dollar in weeks and the price of oil by between five to 10 percent if she eventually wins the seat.