DPW Holdings Inc (NYSE:DPW) shares are having a great run today, rising over 30%, in reaction to the recent rally in Bitcoin price which is currently trading at $7,701.70 and recording 10.38% increase. The digital currency has had a tough run this year, tumbling from an all-time high above $19,000 reached towards the end of 2017.
So why the Bitcon bulls were out in force today? Coinsource CEO Sheffield Clark commented, “The swell is likely due to the impending completion of tax season. My prediction is that with only two business days left before the tax deadline, many Americans have paid their taxes and decided to invest into bitcoin and projects they believe in long term, or try their hand in an emerging market that couldn’t possibly slide any further.”
Head of BKCM Brian Kelly said, “Once [bitcoin] broke higher, shorts were squeezed and forced to cover.”
Quantitative developer and data scientist at Cypher Capital Nick Kirk stated, “The ratio of short margin trades versus longs has been increasing recently […] Buying volume ticked up today and a lot of these short trades got liquidated, helping fuel the rally.”
“Bitcoin & Markets” podcast host Ansel Lindner also joined the party: “I think it’s just some pent-up market movement. There’s also “some relief in the selling” ahead of tax day […] Even though the price has been going down lately, the development of the next generation bitcoin infrastructure hasn’t stopped.”
“After deteriorating through March, cryptocurrenices are showing early indications of improving,” Rob Sluymer, technical strategist at Fundstrat Global Advisors, concludes.
DPW announced last month that its subsidiary, Super Crypto Mining (SCM) has entered into an agreement with a U.S. based entity securing the right to 25 megawatts of power in support of SCM’s operations of approximately 20,000 mining rigs at the location. SCM will be placing at least 2,000 mining rigs at the new location practically immediately. Some of these machines will be supporting our Cloud Mining offering, which the company expects will commence on May 1, 2018.