Market Overview

A Crypto Sympathy Move: Bitcoin Approaches $7K Level As Tether Sells Off

A Crypto Sympathy Move: Bitcoin Approaches $7K Level As Tether Sells Off

Cryptocurrencies have been turning in a forgettable performance so far this year, with bitcoin — the most widely traded crypto — losing a whopping 56 percent year-to-date after a stellar performance in 2017.

The digital currency universe is seeing a solid uptrend Monday, with most participating in the upward move.

What Happened

After closing Oct. 14 at $6,290.93, bitcoin was spiking sharply Monday morning. The rally comes after bitcoin sold off by about 6 percent last week. The digital currency soared to a high of $6,950, but has since then given back some of the gains and was trading at $6,665.91 at the time of publication, according to CoinMarketCap.

Bitcoin rose above the $7,000 psychological resistance point on some of exchanges, including BitFinex.

The upward momentum appears to be broad-based:

  • Litecoin was rising 3.15 percent against the dollar and trading at $54.99. The crypto is down about 3 percent against bitcoin.
  • Ethereum was up 5.41 percent against the dollar to $211.10, but is down 0.76 percent against bitcoin.
  • Ripple was up 6.59 percent against the dollar and about 0.4 percent higher than bitcoin.
  • The cryptocurrency Tether is making a downward move, losing 2.38 percent against the dollar and 8.08 percent against bitcoin.

The sell-off in the crypto is surmised to be the reason behind bitcoin's Monday rally. 

As traders sell Tether and buy other cryptos, the price of the former takes a hit while the latter gains ground. 

"Traders often sell tether to buy other cryptocurrencies, and a sudden influx of tether sellers would push down the tether price — and boost the bitcoin price if that's what some traders are moving their money to," Forbes contributor Billy Bambrough said in a story posted early Monday

What's Next

Although analysts have been calling for a rebound before a year, the reversal of fortunes hasn't really happened. According to analysts' forecasts compiled by comparison website Finder's Sep. 2018 report, bitcoin is likely to end the year at $13,711.

Related Links:

Cryptocurrency Mining: What It Is, How It Works And Who's Making Money Off It

The Companies Behind The Chips That Power Cryptocurrency Mining


Related Articles (GBTC)

View Comments and Join the Discussion!

Posted-In: Bitcoin CoinMarketCap EthereumCryptocurrency News Markets Media Trading Ideas Best of Benzinga