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

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

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