Bitcoin dropped last week up to 5 percent – dragging ripple, Ethereum along with it. Earlier this month, the Bitcoin seem to show a stable trend at its 17 month low volatility low but the stability seem to be over, with the wipe off of billions of dollars from its market within minutes. This week’s start was good for Bitcoin. It jumped almost 10 percent powering the world’s largest crypto currency back to $6,500 from where it started to fall.
As per coinDesk data, Bitcoin leapt from $6,200 to highs of $6,732, adding almost $10 Billion to market’s capitalization in a matter of minutes. One some exchanges, like Bitfinex Exchange, Bitcoin was traded at $7,000. The sudden rise in the Bitcoin prices this morning was stirred by a sell-off of the digital coin tether. It’s a dollar linked digital coin and was the only currency down today.
Tether is the second most traded digital currency after Bitcoin and effect heavily on the market capitalization overall. Traders often sell tether to buy other crypto coins and a sudden influx of tether sellers creates a low trend for tether and boost the Bitcoin price if that’s what traders are moving their money to. While Bitcoin went 10% up, tether went 3% down in the run up.
Many suggest that this sudden surge in the Bitcoin’s price is managed. Tether limited, company behind tether digital coin and Bitfinex Exchange has the same Chief Executive Officer. Last week, Bitfinex dismissed allegations that it was insolvent and said that withdrawls are functioning as normal. Bitfinix wrote “As one of only a very few exchanges operating since 2013, with a small team and low operating costs, we do not entirely understand the arguments that purport to show us to be insolvent without providing any explanation about why. The wallets below represent a small fraction of Bitfinex cryptocurrency holdings and do not take into account fiat holdings of any kind.”
The sudden rise in the price of Bitcoin has erased all the previous losses Bitcoin had to suffer, leaving the Bitcoin Price level since mid-September. As usual, Bitcoin’s price jump high with the Ethereum Price and Ripple Price recording double digit gains. These short changes often are picked up by so called whales buying or selling a big chunk under or above the current market rate. This causes the market rate to suddenly move often causing havoc for digital currency exchanges.