Bitcoin (BTC) Stages Relief Rally to $8,400
BTC prices showed they could bounce, for now establishing the bottom at around $7,800.
Bitcoin (BTC) once again jumped by hundreds of dollars within a day, recovering to the $8,400 range. BTC climbed in the past day, gradually adding 7% to its price, up to $8,431.78. The leading coin moves with relatively low volumes in the past days, between $13 and $16 billion’s equivalent in a day.
The recent price move led to suggestions that BTC, for now, achieved bottom prices at $7,800. Immediately, the Bitcoin fear and greed index jumped to 38 points, from a recent low of 12 points. The overall sentiment is fear, up from extreme fear in the past week. BTC is still unpredictable, but once again the leading coin showed it can outpace the recovery of altcoins.
The share of Tether (USDT) trading stabilized at around 65% of all BTC pairings. At the same time, the share of BTC trades in the entire crypto market is shrinking, down to 27%, from above 28% on Monday. Conversely, the share of USDT is now 35% of all trades, up one percentage point in a day. The changing composition of crypto trades may bring in the next trends on the markets.
New USDT minting happened in the past day, coinciding with the price recovery:
USDT is becoming more important for fintech and has been pointed out as the chief culprit in wash trading. According to Bitcoin Transparency Institute research, as much as 48% of BTC trading volumes are due to wash trading. This leads to fast price slippage when an outside trader attempts to sell.
BTC posted a significant price drop as the third quarter ended, erasing around 30% of its price, down from $12,050 in July. The expectations for the last quarter are uncertain, as BTC enters the final stretch before the halving of the reward.
The Bitcoin network hashrate has fallen to 86 EH/s, from a recent peak above 101 EH/s. Mining does not clearly correlate with market prices, but it is one indicator for confidence in the network.