Bitcoin’s price jump pushed up the other cryptocurrencies on the market
1 min read
On Monday morning Bitcoin has jumped almost 10%. The world’s largest cryptocurrency is back above $6,500. Last week, Bitcoin value seemed to be heading below psychological, $6,000 mark.
According to CoinDesk data Bitcoin jumped from $6,222 earlier today, October 15, to early highs of $6,732, adding almost $10 billion to bitcoin’s market capitalization in a few minutes. On some exchanges, the bitcoin price went up to over $7,200.
According to the same source, the sudden rise in the bitcoin price this morning was signaled by a sell-off of the dollar-linked tether digital coin, the only cryptocurrency which was down today. Bitcoin jumped to $7,200 on Bitfinex, Kraken, Binance, and OKEx, which are all platforms that support USDT. At the same time, Bitcoin moved above $6,700 on non-tether-enabled platforms.
To understand the nature of Bitcoin READ THIS: MONETIZING BITCOIN – THE TECHNOLOGY BEHIND BITCOIN AND ITS USES
How are they related?
Traders sell tether to buy other cryptocurrencies and a flood of tether sellers pushed down the tether price and boost the bitcoin price if traders are moving their money in that direction. The tether was down by some 3%.
Tether’s tokens are designed for stability and its price is usually close to the U.S. dollar price because Tether Limited, the company that issues the tokens, says each one is backed by a dollar in its bank accounts. But this proclamation is not independently verified.
Allegedly, tether’s tokens are designed for stability and its price is usually close to the U.S. dollar price because Tether Limited, the company that issues the tokens, says each one is backed by a dollar in its bank accounts. But this proclamation is not independently verified.
According to CoinMarketCap, the tether is the second most traded digital currencies after bitcoin.
Bitcoin’s price jump pushed up the other cryptocurrencies on the market. Ethereum price and the ripple (XRP) price both recorded around double-digit percentage gains.
This kind of short, keen changes in the bitcoin price is often an effect of trading bots who initiate a buy or sell order, then others follow. That activity causes a domino effect on the price. The same effect may be caused by whales, large holders of a cryptocurrency or some other asset, when they buy or sell a big enough lump at under or above the current market price.
This activity causes the market price of the asset to suddenly move to sale, often causing devastation for exchange operators.
Can this rise in the bitcoin price be a sign of Nasdaq’s return to form? Some market observers say yes. Nasdaq last week dropped towards the end of the week.
Whoever started this run against $USDT was a very large market participant. Isn’t it very strange that both, Bitcoin and tether, break out at the same time?
Or the point is to show that the stablecoin couldn’t keep its peg. Anyway, it is the top story of the day.
In other words, time will show. And the time is on the side of Bitcoin.