Bitcoin price soared to $ 8,000, could it be due to 500 million USDT being pumped into the market?
It seems the Bitcoin bulls are not ready to break out soon after jumping to $ 7,600 just hours ago. Only one hour ago, the price of Bitcoin surged above $ 7,900, reaching a peak of $ 7,980. As of press time, Bitcoin has risen 6.2% in the past 24 hours, slightly less than XRP’s 12% daily increase. And the question that many people are sure to ask is, why is the price of Bitcoin so high? The answer is also straightforward, let AZCoin News tell you, it’s all about Tether (USDT).
Is Bitcoin’s price rise related to Tether again?
According to Coinmarketcap, USDT’s market cap seems to have skyrocketed to $ 500 million, meaning some investors have pumped that money into the cryptocurrency market to buy Bitcoin and other cryptocurrencies. From this, we can draw that every time the supply of USDT grows in correlation with the Bitcoin price dynamics.
#Tether printing machine is running again?
Does the recent #bitcoin price rise to 8000$ happen because of #USDT? ?
And could it be a beginning of a new crazy bull wave?$BTC $BTCUSD pic.twitter.com/snE7FqAaMy
— CryptoHamster (@CryptoHamsterIO) January 7, 2020
And this is not the first time these relationships have appeared. However, this time everything was a misunderstanding. According to the famous cryptocurrency trader, I am Nomad, the market capitalization of USDT hasn’t increased. Instead, the data of Coinmarketcap has been updated to include USDT on Blockchain Tron. This means that no new USDT has entered the market. This time, Tether did not print money to manipulate Bitcoin’s price anymore.
— I am Nomad (@IamNomad) January 7, 2020
Even so, investors are bullish on Bitcoin.
Bitcoin price and Altcoin market increased sharply
Josh Olszewicz, an analyst at Brave New Coin, recently noted that the inverse head and shoulders chart pattern – a bullish trend that has the potential to mark the sharp bottom of BTC – is taking place for Bitcoin.
Source: Josh Olszewicz/ Potential iH&S Forming
He said Bitcoin should reach $ 7,525 (and it happened) and move into the range of $ 8,100 to $ 8,700 – 7% and 14%, respectively. However, the price of Bitcoin can only increase that much, and the reason also comes from a few factors. Such as the 200-day exponential moving average, the daily Ichimoku Cloud, a yearly pivot point, and the weekly 20 moving average.
Besides, Bitcoin’s current price move is reminiscent of the price history in early 2019, before breaking down of $ 1,000 in a day that kicked off the 330% bullish market Bitcoin saw earlier this year.
Besides, the Altcoin trading market is also quite active. Ethereum has gained 4.5% on the day to $ 144. Ethereum’s market capitalization has increased to $ 15.71 billion. XRP recorded double-digit growth with more than 12% and is currently trading at $ 0.218. This is the most substantial coin among the top 10 cryptocurrencies. Maybe, this is the result of Binance Futures listed XRP/USDT permanent contract yesterday.
Bitcoin Cash, Litecoin, EOS, Binance Coin increased from 4% – 5% with a slightly increased capitalization.
Total cryptocurrency market capitalization is currently at around $ 210.6 billion, up 6.6% from the previous 24 hours. Bitcoin Dominance has a 67.6% market share.
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