Bitcoin (BTC) Heads to $5,000 as Price Suddenly Explodes
A sudden rally brought BTC to a dramatic three-month peak as prices headed toward $4,900 within an hour.
On Tuesday morning, Bitcoin (BTC) once again proved its unpredictability, shooting for the $5,000 level in the most dramatic daily climb for the past three months. Within minutes, BTC pumped from lows around $4,100 to as high as $4,849.46. The rally remained mystifying to traders, with the most probable explanation being a sudden pump.
The price climb happens on relatively high volumes above the equivalent of $12 billion in 24 hours. This time, the price climb is different in comparison to weekend rallies that happened on low volumes.
This immediately increased the BTC price dominance to above 52% as some altcoins retreated. But this time, the sudden price rally is not caused by anomalies in stablecoin trading. In fact, the price of Tether (USDT) is $1.01, meaning that the USDT price for BTC is in fact about $49 lower than USD prices.
But this time, the USDT asset is seeing another anomaly: without new printings and a supply of 2.03 billion coins, the stablecoin sees its entire supply turn over six times in 24 hours to sustain the trading activity during the Tuesday rally. The resultant number of transactions keeps rising:
https://twitter.com/soleil_dusoir9/status/1112668306031472641
The BTC price levels are seen as moving above $5,000 but stalling before $5,500. The sudden, dramatic move is returning volatility to the leading coin, after months with a stagnant price moving between $3,800 and $4,200 before breaking out.
BTC managed to mark a new yearly high for 2019, but the price climb this April is still an anomaly in many ways. The spike in BTC prices also led to a market-wide selling of altcoins. While the assets increased in dollar terms, most fell against BTC, between 5% to 15%, as traders moved in for the leading coin’s rally.