Monday morning market meets the crypto community with green positions. At 10.05 (GMT+1) 80 out of the top-100 cryptocurrencies are showing positive dynamics. All top-10 cryptos by market capitalization except Tether’s USDT are trading in plus.
This morning, the first cryptocurrency has shown a sharp rise from $6.300 position where it was trading for the last 4 days touching the $7.000 mark. On Bitfinex at 8 AM (GMT+1) Bitcoin (Bitcoin) was trading against $7.300 - $7.400.
At the same time, Bitstamp cryptocurrency exchange was trading Bitcoin maximum at $6,756 this morning.
It looks like with today’s positive trend Bitcoin has shown, the first cryptocurrency is beginning to overcome many months of resistance! Assuming the drop in the USD₮ price it looks like some big player got rid of the USD₮ and exhausting flat BTC was showing, finally, is about to be over.
The fluctuations in the Tether’s price began as soon as investors started to doubt the real stability of a stablecoin. Two weeks ago the information has appeared that Puerto Rican Noble Bank, which, presumably, serves Tether, was threatened with closure as the bank could not find financing. The administration of the bank tried to find financial support from one of the large Tether coin holders, but the requests were not satisfied.
It was also reported that one of the big USD₮ holders was trying to sell "tens of millions of Tether", but did not find anybody interested in the offer. Looks like today he has finally succeeded.
The close relationship between stablecoin and Bitfinex exchange was suspected to be the reason for Bitcoin price to pop up.
For comparison, the Weighted average of Bitcoin on other exchanges that are using USD pairs instead of its crypto analog is $6415.93 (as of 11.00 GMT+1). While the weighted price you will pay for 1 BTC at Bitfinex, Bittrex, Hitbtc, and Poloniex is $6833.94.
The price of the cryptocurrency is directly related with the trust of the community in it. With the fading confidence in Tether, investors started to choose other alternatives. As such, the price of another stablecoin backed 1:1 by the U.S. dollar- TrueUSD (TUSD) has shown its maximum of $1,15.
Recently presented Gemini Dollar (GUSD), the world’s first regulated stablecoin that combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators, has also raised in price, trading at maximum $1,05 this morning.
The market is slowly overgoing through its correction, with the total positive trend being still in power.
The previous week’s cryptocurrency market fall coincided with the collapse of the U.S. traditional stock indices. Contrary to the expectations, investors from Wall Street did not massively buy cryptocurrency in crisis conditions.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.