Bitcoin (BTC/USD) jumped by 6.1% following reports of the possible uncovering of Satoshi Nakamoto’s true identity, and have since extended their gains.
Bitcoin hit a one-month high of $425 on Bitstamp. It had not traded this high since coming off its spike to over $500.
The rise would seem highly counterintuitive. If Satoshi’s true identity was indeed uncovered, one might have expected fear to grip the markets. The reports may have shed more light on Satoshi’s reported stockpile of 1 million bitcoins, which if liquidated, could trigger an unprecedented price crash.
In addition, many Bitcoiners have historically been more at peace with Satoshi’s identity remaining unknown, in line with the theme of Bitcoin’s anonymity.
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Traders apparently did not fear a sell-off, and some were perhaps hopeful of a brighter Bitcoin future with the news.
The jump came on a spike in volume which immediately returned to normal levels. Recent reported bitcoin trading volumes have been the highest on record, though most figures reported by exchanges cannot be independently verified.
Bitcoin is now up by over 30% for the year and is trading 22% above its 50-day moving average (MA).
Once again, litecoin’s (LTC/USD) jump was smaller. The LTC/BTC rate thus fell to 0.0085, coming dangerously close to its lowest levels since June.