Bitcoin Price Jumps 11% as Global Trade Volumes Double Overnight
The price of Bitcoin (BTC) jumped 11.2% in the space of just two hours on Monday morning. The sudden price hike was fuelled by a doubling of market-wide trade volumes, which hit $18 billion after sinking to $9 billion on Sunday.
The altcoin market also took its share of the spoils, with ETH growing in value by 14%, and the major alts showing similar numbers.
Meanwhile, Tether (USDT) was also rocked by the morning’s activity, and not in a good way. The valuation of USDT fell as low as $0.92, perhaps as their trading bots failed to keep up with the sudden Tether cash-out. However, as covered by CCN today, Tether’s fluctuation may also be tied to the decision by BitFinex to drop its partnership with Noble Bank – the bank which was holding the fiat reserves used to back up USDT issuances.
At 05:00 (UTC) Monday, the price of Bitcoin was still stuck in the $6,200 range, and all was quiet on the exchanges. Suddenly BTC volumes were pumped with an unexpected $1.8 billion, and the BTC dollar valuation climbed from $6,258 up to the 07:00 peak of $6,965.
This marks the first time since before the dip of September that BTC has come so close to breaking the $7,000 barrier, and despite the subsequent rollback to the $6,500 range, inspires some confidence in a market that appeared to be in stalemate for much of the last month or so.
Trade volumes continued to rise following the spike as the coin price rebounded to the $6,500 range, and BTC trade activity now stands at $5.8 billion at time of writing, up from yesterday’s $3 billion.
Yesterday’s global trade volume of $8.9 billion was the lowest recorded in over three months, and just like the last time it fell so low, it has been accompanied by a sudden explosion in a positive direction.
The morning’s spike was also kind to the altcoins, and we even saw Ethereum (ETH) grow at a faster rate than BTC, with trade volumes also doubling overnight.
In the same two hour window as BTC, the dollar valuation of ETH spiked from $196.16 up to a brief peak of $222.03. That’s a 14% rise, and was accompanied by an increase to trade activity of exactly 100%.
USDT Not So Stable
Few stablecoins in the crypto world remain precisely at a $1 valuation, and on Monday the valuation of Tether fell to a price not seen since April of 2017. One USDT token was worth just $0.925284 at around 07:00 UTC.
At time of writing the valuation remains in the $0.96 range, as Tether undergoes one of the least stable periods in its existence. Tether’s association with Noble Bank may have ended due to the increased attention being paid to the Puerto Rican bank by financial regulators, although at this point no facts have emerged.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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