Bitcoin (BTC) Above $11,000 on Weekend, Will Price Survive?
BTC rallied late on Sunday, easily eating up the $10,000 level and shooting up above $11,100.
Bitcoin (BTC) gave more signs it may be out of the woods, preparing for an even larger rally. The coin waited just below the $10,000 mark, and late on Sunday, the predictions for five-digit prices were fulfilled, with BTC having one of those $1,000 days.
BTC reached a peak on Sunday at $11,246, as trading volumes picked up and reached $29 billion’s equivalent per day over the weekend. Later, the activity subsided a bit, and BTC traded at $10.681.38 as of 5:30 UTC on Monday.
The big difference for BTC is that this time, the rally is spread around exchanges. The first time BTC prices inched up from the $6,000 range, this was triggered by activity on fiat-based markets: Kraken, Bitfinex, Coinbase, and Bitstamp. Now, the trading activity has moved over to Binance, OKEx and a handful of niche exchanges, fueled by Tether (USDT) trading.
More than 62% of all BTC trades are against USDT, showing the importance of the coin’s turnover within the trading ecosystem. But this ratio also generated skeptical opinions, revealing that the rapid rise of BTC prices, taking just hours, may have been a deliberate attempt.
The recent BTC rally also happens at a time when USDT once again broke below its dollar peg and hovered around $0.99. This makes for a price premium on USDT-powered exchanges. At one point, the premium re-expanded to $100. On Bitfinex, BTC trades at around $10,713, slightly higher compared to other exchanges.
The most recent and rapid price rally led to continued doubts whether the high valuations of BTC were sustainable, and whether USDT could survive one more price rally without collapsing. USDT has been shown to drive the price rally in 2019, as the coin grew its supply over the past six months.
But so far, BTC survives above the $10,000, easily breaking new records for 2019, working to increase traders’ enthusiasm. BTC for now grows more rapidly, pressuring altcoins, but an altcoin rally is also seen as a possibility.
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