Bitcoin kicked last week off with a rally. Adding about $10 billion in marketcap
in a matter of minutes. On some exchanges the currency even climbed
above the $7000 mark.
Bitcoin took a huge jump last Monday morning. In a few minutes, the price of the currency
had increased by almost 10%. On some trading platforms where Bitcoin often trades at a
premium, the price rocketed above
The reason for this sudden price move was a sell-off in the dollar-linked cryptocurrency
Tether. Traders often own Tether for its stability. When the market offers an opportunity,
traders sometimes sell Tether to buy other cryptocurrencies. Pushing the price of Tether
down – while boosting the Bitcoin price. On Monday, while traders where pushing the
Bitcoin price higher – Tether was down some 3% by a massive sell-off.
The week’s rise in Bitcoin price erased the previous week’s losses. The move indicates a
strong resistance just above the $6,000 mark. When it looked like it would fall beneath
that level, buyers quickly pushed the price higher. Sharp changes in the price like this
one, are often caused by trading bots initiating a buy order that then gets picked up by
others, causing a domino effect.
Some market watchers speculated the rise in the bitcoin price could signal a return to
form for the Nasdaq stock exchange — which previous week dropped sharply towards the end
of the week.