Bitcoin once again lived up to its name. Throughout 2020, Bitcoin has seen significant levels of volatility, especially since February after the early 2020 momentum slowed. According to data from BitPremier, BTC / USD volatility for 30 days has increased from 2.2% to about 3.2%, at the time of writing.
While Bitcoin's price seemed to be consolidating just below the $ 8,000 mark, that day witnessed a major fall in less than an hour. The volatility of the king of cryptocurrencies was made clearer when the price of BTC dropped from $ 7,360 to $ 5578 in an hour, hitting a low of $ 3800 before returning to $ 5090 at the time of writing.
Cause USDT price increase
Interestingly, while the Bitcoin price plummeted, the price of USDT has witnessed a marked increase. Demand for USDT increased as traders tried to take advantage of the market's plunge. According to market data from Skew, USDT prices in US dollars have noted incredible fluctuations. The difference and especially the rise of USDT, can be considered as an indicator for increased trading activity when traders see price fluctuations as an ideal time to buy into Bitcoin with those who expect the price. will reverse.
The USD-backed stablecoin chart on Skew also shows increasing demand as USDT prices record new highs. Other USD-backed stablecoins such as USDC and BUSD also surged in the same period.
Many have speculated that USDT mintions are the cause of volatility in the cryptocurrency market.
According to Whale Alert, more than 60 million USDT has been printed resulting in a drop in the price of Bitcoin. Although there is no real correlation between Bitcoin price fluctuations and USDT, there are always fluctuations in Bitcoin price whenever there is progress in USDT.
In fact, according to a previous research report, 6 out of 9 times USDT was printed in 2019, Bitcoin recorded positive feedback, more than 77% of the time the Bitcoin price increased after each casting. Although today, this event is no longer appropriate, but the fact that USDT has been minted and Bitcoin has experienced a rapid rush.
You can see the USDT price here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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