Bitcoin price jumped $200 in one hour … some explanations for the reasons for this
The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles
Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles
Answer Bitcoin price jumped $200 in one hour … some explanations for the reasons for this
Bitcoin price jumped $200 in an hour and a half on Monday, climbing to its highest level in the last 30 days and surpassing $7,800 at the time of writing.
The world’s largest cryptocurrency by market capitalization surged after data provider CoinMarketCap showed a sudden jump in the supply of the stablecoin Tether (USDT).
Initially it appears that the 5% rise in the price of Bitcoin was preceded by a $500 million increase in the USDT market capitalization, rising at 20:49 UTC from about $4.14 billion to $4.65 billion at 20:54 UTC.
The Tether official website stated that the total value of the coin is estimated at $4,776,470,463, with a guaranteed discount of $4,656,898,280.
Read:BitMEX allows its users to buy and trade Ethereum
However, archived versions of the page display similar readings over the past few days, indicating that CoinMarketCap data did not absorb the full width beforehand.
USDT operates on many different blockchains, including Omni, Ethereum, Tron and Liquid.
Traders can deposit US dollars with Tether which is the issuer of the USDT, and get a stablecoin in return.
Since USDT is pegged 1:1 to the dollar and is used to move funds quickly between crypto exchanges, the inflated market capitalization could have been interpreted as an increase in demand for digital assets.
source Image.
It remains unclear, then, why bitcoin jumped late on Monday.
The arguments that Bitcoin is being used as an asset and as a safe haven by investors dominates against the backdrop of tensions between Iran and the United States that have continued since January 3rd.
America and Iran Dispute… How Do Tensions Affect the Bitcoin Price?
At the time of writing, the Dow Jones Industrial Average (DJIA) is up 0.25% while the S&P 500 is up 0.35%.
Crude Oil (USOIL) took a lighter hit and fell 0.35%, so saying that Bitcoin is a safe haven during times of uncertainty remains unclear at this point.
Read:The fear and greed index towards cryptocurrency reaches its lowest level in 5 months
The rest of the other cryptocurrencies such as Ethereum and Ripple rose significantly by 5.76% and 11.18%, respectively.
Read also:
The worsening of the Lebanese crisis may increase the possibility of Bitcoin adoption
Bitcoin Investors Complete 2019 With Smiles On Their Faces
And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time