What Caused Bitcoin Price to Surge Past $10K Over the Weekend?

Since Dec. 18, 2019, in less than three months, Bitcoin’s (BTC) price surged by 68% against the United States dollar. It surpassed the $10,000 level on Feb. 9, marking the start of a full-blown crypto market rally for most.

The sentiment around the recent Bitcoin rally remains divided amongst investors. Joe007, for instance, one of the biggest whales in the cryptocurrency market, has been adamant that the upsurge has been a result of pure manipulation.

Other investors like Adaptive Capital general partner Willy Woo and Three Arrows Capital CEO Su Zhu said that both fundamental and technical factors have supported the rally since the beginning. When Bitcoin’s price was hovering at around $7,000, Zhu noted that the premium of the BTC/USDT pair indicated an accumulation phase was starting particularly in Asia.

While the explanations for the recent Bitcoin upsurge vary, they ultimately can be narrowed down to three broad factors: accumulation since December 2019, on-chain data indicating a rise in investor activity and a possible manipulation by whales.

Factor #1: accumulation of Bitcoin since December 2019

On Dec. 28, 2019, Zhu stated that the BTC/USDT premium suggest investors were accumulating, and Bitcoin’s price could hit $9,000 by the end of January:

“BTC/USDT premiums and price action show clear signs of accumulation and money flow back into risk. Would not surprise me to see 9K+ before the end of Jan.”

At the time, Bitcoin’s price was hovering at $7,200, and at the end of January, as predicted by Zhu, its price peaked at $9,500. When the BTC/USDT pair was showing a premium over spot, it meant that the demand for Tether and Bitcoin was on the rise.

According to cryptocurrency research firm Diar, the majority of the on-chain activity of Tether in mid-2019 occurred in China. The volume