While the entire market was speculating to retest the $5800 levels the entire opposite happened. Today the cryptocurrency market seems to have escaped the clutches of the bear with almost all the cryptocurrencies surfing on a gigantic bullish wave. The best advice in the financial markets is proven to be true again
“Be Fearful when others are greedy and greedy when others are fearful.”
At first, there were scam rumors for Tether, because only USDT pairs pumped. Furthermore, there was the rumor that all USDT pairs will be delisted from Binance.
Hence, Bitcoin crossed $7k and climbed to $7,700 on some exchanges like Bitfinex. 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, Tether’s fluctuation may also be tied to the decision by Bitfinex to drop its partnership with Noble Bank – the bank was holding the fiat reserves and used to back up USDT issuances.
The firm behind it, Tether Limited, has come under scrutiny over whether it actually holds enough reserves to match the number of tether tokens in circulation — Tether claims it does. Charles Hayter, the chief executive of comparison site CryptoCompare, released a statement-
“There is concern about tether and whether it is truly backed by dollars and rumors about USDT (tether) being delisted from various exchanges,”
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 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.
Looking at the chart above, we can see a spike to $7600 level in just a matter of minutes. Subsequently, a huge red candle because of the sell-limits being triggered. Bitcoin will find its ground at $6700 levels after these high-volume trades are closed.
The Altcoin market also took its share of the spoils, with ETH growing in value by 14%, and the major alts showing similar numbers. We even saw Ethereum (ETH) grow at a faster rate than BTC, with trade volumes also doubling overnight.
Also, what contributed to the spike was a statement made by the popular contract service DocuSign is giving its customers the option to secure agreements on the Ethereum blockchain. The company made the announcement in a blog post about new features coming this fall.
“Also in Manage,’ for customers who want a blockchain as part of their System of Agreement, we have a pre-built integration with the Ethereum blockchain, the most popular blockchain for smart contracts. Although DocuSign can natively verify the integrity of any DocuSigned document, this integration provides an additional option for verifying document evidence via blockchain technology.”
At the time of writing, EOS was gaining by a massive 11.98% with a total market cap of $5.09 billion. The cryptocurrency was trading at $5.78 with a 24-hour market volume of 688.890 million. A majority of the cryptocurrency’s trade volume was held by Bitfinex holding a volume of $4.527 million. Bitfinex was closely followed by Krake which had a grasp on a relatively lower $105,860.
EOS is one project with great potential and huge market cap. It is seen as a competitor to the Ethereum network
Another cryptocurrency undergoing the surge was Litecoin [LTC] which was going up by 12.4%. The cryptocurrency held a market cap of $3.288 billion and was trading for 58.70. The 24-hour trade volume held by the cryptocurrency was $340.33 million. A majority of the cryptocurrency’s trade volume was held by DOBI trade with $70.549 million which was closely followed by Bithumb’s $65.904 million.
Litecoin also surged on the day its listing was announced on Gemini, one of the leading cryptocurrency exchange and custodian that allows customers to buy, sell, and store digital assets.
Game of accumulation
In every market, what comes first is the intent. Moreover, you also have to know where you are in the food chain. If you are a whale, there are things you can do those small traders cannot. At the top of the list of those things is price manipulation. Bitcoin (BTC) being a game of accumulation, the whales are in it for the long term. They tend to trigger all the weak hands so they can fill their bags for the next bull run.
Also, what can be noted here is that concerns related to USDT were all assumptions and most likely planned FUD. However, the actual reason is most likely very simple. We are at a place in the market cycle where Bitcoin, Ethereum have likely found a bottom. Both these currencies being a store of value in the crypto world have the highest market cap. When the last bull run ended most of the Whales cashed out, as a result of that the market bled for months. Now, its time for the new market cycle to start. Whales are converting bags full of USDT to Bitcoin and other Altcoins. In fact, $500M worth of Bitcoin were bought today, which made the Bitcoin market cap go up by $25B.
Now, the Bitcoin/USD and Bitcoin/USDT markets have to even each other out at probably around $6,600.