The digital currency Bitcoin was fueled by another notable nocturnal buying rally in which the currency is scratching the 7000 USD mark for the first time in three weeks. The peak reached Bitcoin at 6942 USD, currently, the cryptocurrency Bitcoin stands at 6930 USD.
The increase is reminiscent of last week’s rise to $6800 when BitMEX was forced to suspend service due to scheduled maintenance. But it seems that in the fast-paced world of cryptocurrencies, no pump is the same.
Bear Market Over?
Bears that rely on falling courses should be careful not to fall into any trap. However, it does not seem to bother a potential bear trap, as Bitcoin shorts remain exceptionally high relative to Bitcoin longs. All of this happens in times of low volume, which seems to be an excellent option for whales that could easily liquidate the bears.
Tether Responsible for It?
It is likely, but controversial, whether printing Tether’s USD-backed stable coin has been shown to affect the crypto market. The company’s recently launched printing press could be partly responsible for the upturn on 27th August. Because in the last six days 210 million USDT (USD tether) were produced or ‘printed’.
$80,000,000 of the $210 million was generated in the last 24 hours, ahead of the recent increase. Of this, $50 million was sent to the Bitcoin exchange Bitfinex and the remainder was transferred to Tether’s $3 billion treasury. It may well be known that the transfer to Bitfinex is partly responsible for the price increase, but it is questionable to what extent $50 million can really affect the price. As so often, the question remains open as to what effect Tether really has on the Bitcoin price.
It seems that it has now found some support above the $6800 mark, and possibly this could be the new support level for the future. Maybe it’s just another pump and dump – we’ll see.