The recent cryptocurrency surge could be connected with algorithmic trading, a method of using automated pre-programmed trading instructions to detect market trends and choose the most profitable ones.

Bloomberg noted that algorithm trading is gradually becoming popular in the past months. 17 representatives of the method, including new algo or quantitative funds, were introduced since September 2018, which made up 40 percent of all hedge funds established in this time frame.

While the entire crypto market has suffered a 72 percent loss of value in 2018, these hedge funds have had profit gained months, approximately 3-10 percent each by using algorithm trading.

According to Bloomberg, the 20% price surge in Bitcoin took place right after the Asian market resumed trading, and was believed to have been triggered by a $100 million USD trade, conducted by 3 high-profile US-based crypto exchanges – Coinbase, Kraken and Bitstamp. Once the 20,000 BTC order was made, the bots could begin trading, causing the volumes to shoot up and the crypto price followed after that.

Bloomberg cited some interviewed professionals, stating that algorithmic trading will bring potential advantages to the crypto market. The Maltese crypto firm Binance CFO Wei Zhou said the new algorithmic trading will be “new rock stars of the industry”.

However, Travis Kling, founder of the Los Angeles-based crypto hedge fund Ikigai, was rather skeptical about the future of algorithmic trading in cryptocurrency. He feared that the method can be used to manipulate the market by producing fake orders.