Bitcoin Has Leapt Sharply Higher — Here's Why


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Bitcoin, which just last week had its first major sell-off in weeks, has this morning jumped more than 5%, powering the world’s largest cryptocurrency back above $6,500 after it looked likely to fall below the psychological $6,000 late last week.

Bitcoin leapt from $6,222 earlier today to early highs of $6,732, according to CoinDesk data. On some exchanges, including the Bitfinex exchange where bitcoin often trades at a premium, the bitcoin price climbed to over $6,800. 

The sudden rise in the bitcoin price this morning was signalled by a sell-off of the dollar-linked tether digital coin — the only cryptocurrency which is down today, according to CoinMarketCap data.

Traders often sell tether to buy other cryptocurrencies and a sudden influx of tether sellers would push down the tether price — and boost the bitcoin price if that’s what traders are moving their money too.

A smartphone displays the bitcoin market value on the stock exchange via the Yahoo Finance app. (Photo by Guillaume Payen/SOPA Images/LightRocket via Getty Images)

Short, sharp changes in the bitcoin price are often attributed to either trading bots initiating a buy or sell order that then gets picked up by others, causing a domino effect on the price, or by so-called whales (large holders of a cryptocurrency or another asset) buying or selling a big enough chunk at under or above the current market rate.

This causes the market rate of the asset to suddenly move in the direction of the sale, often causing havoc for exchange operators.

The bitcoin price has suddenly begun swinging wildly again after months of calm.CoinDesk

Bitcoin’s falling price since the beginning of the year (which is down from highs of almost 20,000 at the end of 2017) has been put down to a fall in trading volume since its peak at the end of 2017 — something that has hit cryptocurrency exchanges around the world, prompting some to cut costs and lay off staff.

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Bitcoin, which just last week had its first major sell-off in weeks, has this morning jumped more than 5%, powering the world’s largest cryptocurrency back above $6,500 after it looked likely to fall below the psychological $6,000 late last week.

Bitcoin leapt from $6,222 earlier today to early highs of $6,732, according to CoinDesk data. On some exchanges, including the Bitfinex exchange where bitcoin often trades at a premium, the bitcoin price climbed to over $6,800. 

The sudden rise in the bitcoin price this morning was signalled by a sell-off of the dollar-linked tether digital coin — the only cryptocurrency which is down today, according to CoinMarketCap data.

Traders often sell tether to buy other cryptocurrencies and a sudden influx of tether sellers would push down the tether price — and boost the bitcoin price if that’s what traders are moving their money too.

A smartphone displays the bitcoin market value on the stock exchange via the Yahoo Finance app. (Photo by Guillaume Payen/SOPA Images/LightRocket via Getty Images)

Short, sharp changes in the bitcoin price are often attributed to either trading bots initiating a buy or sell order that then gets picked up by others, causing a domino effect on the price, or by so-called whales (large holders of a cryptocurrency or another asset) buying or selling a big enough chunk at under or above the current market rate.

This causes the market rate of the asset to suddenly move in the direction of the sale, often causing havoc for exchange operators.

The bitcoin price has suddenly begun swinging wildly again after months of calm.CoinDesk

Bitcoin’s falling price since the beginning of the year (which is down from highs of almost 20,000 at the end of 2017) has been put down to a fall in trading volume since its peak at the end of 2017 — something that has hit cryptocurrency exchanges around the world, prompting some to cut costs and lay off staff.

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