Over the past week, Bitcoin (BTC) was initially gradually gaining ground, starting from around $7,000 last Friday and rising towards $7,400 on Wednesday – a level not seen for more than a month. But while upbeat sentiment was taking hold, mysterious bears triggered a flash crash, wiping out nearly $1,000 from the value of 1 BTC and nearly $40 billion from the whole cryptocurrency market. The most probable reason behind the crash were reports that Goldman Sachs (NYSE:GS) was abandoning its plans to launch a Bitcoin trading desk. The rumors were later dispelled by the major investment company, but the Bitcoin sentiment was already damaged.
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Bitcoin (BTC) Hashrate Goes Through the Roof as Prices Break Above $7,000 |
Bitcoin (BTC) received no support from Tether (USDT), and slid sharply from $7,300 to the $6,900 range, followed by another crash towards $6,400. On Friday, as of 12:30 UTC, BTC traded at 6,436, almost without change for the past 24 hours, but losing more than 7% for the week.
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BTC lost the support from USDT, as the Tether treasury wallet pulled back some of the extra liquidity sent to Bitfinex. Trading volumes remained around $4.5 billion, but the share of USDT trading remained above 50%, at one point climbing towards 60% of all activity. In the past weeks, USDT has become even more influential for the price of BTC.
This article appeared first on Cryptovest
