While things were just settling on the lower side for bitcoin and other altcoins, there was a pump in prices which took all the top 10 cryptos into green except Tether. The move seemed to be driven by Tether sell-off and price movement in Bitfinex where BTC hit USD 7000 opening a huge spread compared prices in other exchanges.
Tether sell of responsible for this sharp rise
Bitcoin saw a sudden spike in prices and in seconds the coin touched USD 7000 at Bitfinex taking everyone by surprise. The coin stayed above USD 7000 for a couple of minutes before sliding back to USD 6800 and again rising to USD 7400. This push was enough to bring the streets to green as all top 10 coins had a bright shade of green apart from Tether.
While people were unclear what had happened, Forbes reported that this sudden spike was signaled by a sell-off of the dollar-linked tether digital coin — the only cryptocurrency which is down (while reporting). Forbes also reported that
“Traders often sell tether to buy other cryptocurrencies and a sudden influx of tether sellers would push down the tether price — and boost the bitcoin price if that’s what traders are moving their money too.”
The spurt was so quick that not many people had an idea of what had happened.
While BTC was up Tether saw a steep fall of around 5% signifying a sell-off as Forbes reported.
The rise in BTC was replicated by all altcoin as their charts too showed vertical climbs.
The street is skeptic as last time Bitfinex and Tether appeared in a news together, it was surrounded by controversy of price manipulation. Hope this time it’s just a regular sell of and not a manipulative dump that BTC and other altcoins are noticing
Will this push in prices sustain or will this short rally fizzle out? Do let us know your views on the same.