bitseven.comBITCOIN (BTC) bounced back from £4,743.47 ($6,232.67) this morning to trade at £4,968.83 ($6252.78) per token at 3.10pm BST, according to CoinDesk, on Monday, October 15.
Bitcoin, which has recently experienced a turbulent period, at one point even surged to a two-month-high of £5,928.46 ($7,788) today on the Bitfinex trading platform.
The immediate outlook for bitcoin is neutral but the pullback from highs above £5,174.09 ($6,800) has supported a bearish outlook.
A close above £5,396.20 ($7,090) could potentially boost the prospects of a bullish reversal above £5,632.14 ($7,402).
However, a move below £4,679.50 ($6,150) – today's low – could reinforce a bear back into the driver's seat, allowing a drop to June’s low, below £4,413.19 ($5,800).
Today's nine percent jump in growth is thought to be due to due to investors fleeing the so-called stablecoin Tether (USDT).
Cryptocurrency traders describe stablecoins as any cryptocurrency pegged to a stable asset.
Crypto-trader Alex Kruger suggested bitcoin’s Tether-related spike was an unhealthy “pump” on the crypto markets.
He tweeted: "Would be quite an irony if a Tether collapse would send bitcoin out of this bear market."
Tether today lost its US dollar peg and is exchanging hands well below its historical trading range.
Tether was trading for £0.74 ($0.977083) per token at 3.30pm BST today, according to CoinGecko.
Although reasons for price plunge are unconfirmed, there have been rumours of an alleged loss of market trust leading to a possible sell-off.
Critics have in the past accused the currency of operating a fractional reserve and covering over its alleged reserve deficit in complicity with associated exchange Bitfinex.
Tether ended its relationship with audit firm Friedman LLP in January.
The unusual drop in Tether’s value indicates investors have moved money out of tether and into other cryptocurrencies – possibly over fears the stablecoin is fully backed by dollars.
This theory is supported by solid growth in the majority of crypto markets.
There is also evidence of growing interest in emerging stablecoins like Paxos Standard, TrueUSD and Gemini Dollar, which all reported gains during the USDT sell-off.
TrueUSD is maintaining its peg against the US dollar.
The coin against the dollar itself is trading 1.9 percent higher than expected on the Binance crypto exchange.
TrueUSD’s weekly rate has been 3.7 percent higher than the dollar, confirming the coin is emerging amidst the unrest in the Tether market.
bitseven.comBitcoin leveraged trade at 100x leverage maximum, 100% profit at 1% price raise
Make a profit whether the bitcoin price rises or falls
BITCOIN LEVERAGE TRADING YOU CAN TRUST