Although the year 2020 began for Bitcoin to jump up, now the situation has changed dramatically. Over the past few weeks, the most popular digital currency has experienced significant fluctuations. Bitcoin volatility increased after the stop of the bullish impulse, which the cryptocurrency market participants had high hopes for. BitPremier agency noted that Bitcoin volatility in 30 days increased from 2.2 to 3.2%.
Analysts breathed a sigh of relief when the Bitcoin exchange rate stopped a sharp drop in the indicator just below $8,000. But the situation remains to be unpredictable. Literally in an hour, the price of Bitcoin dropped sharply to $5,578. Thus, the market capitalization of Bitcoin fell by almost 25%.
There is an interesting situation in the cryptocurrency market. While Bitcoin is plummeting, the price of Tether (a cryptocurrency token) has started to rise. Now traders have activated, who want to take advantage of the sharp drop in Bitcoin to their advantage. This suggests that cryptocurrency trading has the opportunity to receive a new impetus for development. Traders note that right now it is necessary to buy Bitcoin at a reduced price since there is a chance that the digital currency will soon rise again.
Cryptocurrency coins that are pegged to the dollar have now entered an active phase of growth. Coins such as USDT and USD are in great demand among traders and investors amid falling Bitcoin. Some experts draw a direct correlation between the depreciation of Bitcoin and the growth of Tether coinage.
According to Whale Alert, at the time of the fall of Bitcoin, $60 million was issued. It makes no sense to draw a relationship between the dollar and Bitcoin. But do not forget the cases when Bitcoin stabilized against the backdrop of an increase in the price of USDT. This creates an optimistic mood among the participants of the cryptocurrency market.
According to the data for 2019, when Tether was minted, Bitcoin reacted positively to this in 77% of cases. The current growth of Tether amid depreciation of the Bitcoin rate remains a mystery to many and an occasion for new forecasts regarding the cryptocurrency market paradigm shift.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.