Bitcoin is back to doing what Bitcoin does best - making big moves without breaking a sweat. Starting today, May 13, 2019, at around $6,900, the leading cryptocurrency is now over $7,800 - a surge of around 13% in 24 hours.
This price action is even more dramatic in the context of the last three months, where Bitcoin was trading around $3,600 on February 13 and has now effectively doubled in value - a welcome change given how 2018 was a slow year, termed the crypto winter.
The question, however, is what is driving this recent rally and is it sustainable? Let’s take a quick look at recent possible triggers.
Early April Jump
April 2019’s first week saw a major jump in Bitcoin price, from $4,000 to $5,000, which was, as per reports, due to a large order executed simultaneously across multiple OTC desks. This surge provided much-needed momentum and helped shift market sentiments and put Bitcoin back under the spotlight.
This surge was also accompanied by a noticeable jump in daily trading volumes, which further helped push the market forward.
Bitfinex Scandal and USDT Doubts
The recent Bitfinex scandal surrounding its liquidity issues (to the tune of $850 million) has raised doubts over Tether (USDT) backing, and given how USDT has been the leading trading pair with BTC, it makes sense that people want to cash out of USDT and buy Bitcoin to secure their ho...