bitcoin

Markets: Bitcoin price back above $6700, despite ‘bad’ news – what’s driving the gains?


Despite the SEC delaying a decision on the last exchange traded fund proposal currently on the table, the price of Bitcoin has jumped by almost 5% in the last 24hrs as the Top 10 crypto’s all gain. 

In recent days, it’s been easy to be blinded by the massive gains made by XRP, however – quietly, in the background – this week has also been a healthy, if worryingly erratic week for Bitcoin’s performance. The last 24hrs has seen it’s value rise by around five percent, leaving it sitting well above the $6,700 mark at the time of writing – and one of a very green looking set of numbers among the Top 10 traded cryptos.

While it’s hard to take your eyes of the kind of numbers that XRP is putting in – despite the fact that nobody seems quite sure why, and we’re more than a little confused about the amounts of money flowing into the Ripple-created crypto via Asian exchanges Zb, Bithumb, Upbit and Bitbank – you also have to be startled by Bitcoin’s ability to buck what seemed to be an ongoing downward trend, and bearish sentiment.

While, on the surface, the decision of the SEC today to delay a decision on the VanEck/SolidX exchange traded fund, appears to be more bad news, it doesn’t seem to have been received that way by the markets. There is a train of thought, however, that sees this as a bullish sign.

It’s not an outright rejection after all, which was the fate that has befallen all others that have put the same idea into the SEC’s inbox thus far. Add to that the fact that over 1400+ people felt the need to have a say on the matter – 99% of them in favour – and that the postponement was hardly unexpected, and you can see why people are hopeful that these are all positive signs of a shift in attitude by the Commissioners.

The markets certainly didn’t react the way they have to rejections earlier in the year. As you can see by the performance of BitFinex’s BTCUSD market. Here we can see the big leap of the day, just before 9am (GMT+1), with the price peaking at around $6,775 at about 1pm.

It’s interesting to compare that to the same exchange’s BTCUSDT market – Bitcoin trading against Tether, the so-called Stablecoin that was implicated in price manipulation of Bitcoin earlier in the year.

Here we can see much bigger volumes of Tether – indeed, according to CryptoCompare, Tether is responsible for around 45% of Bitcoin trading volume over the last month (USD is around 27%, and the next biggest slice). That may make the figures seem normal, however, some Twitter users have been pointing to the relationship between Tether and BitFinex, and its activity in moving around USDT in the last 24hrs and questioning whether it is being used to effect the price.

Similar accusations were made earlier in the week when a dip and then spike occurred prior to the close of CBoE Bitcoin Futures, and event that is notorious for introducing volatility in the Bitcoin market. Now, twitter user @Bitcoin_EGypt has been tracking the depletion of a known BitFinex Tether Wallet.

And others have been quick to jump in and support his observations.

That chart, in case you were in any doubt, claims to compare and contrast the depletion of said wallet with the rise in the price of Bitcoin against both market and new headwinds. Both Twitter accounts offer much more analysis of – and no little animosity towards – what they believe Tether and BitFinex are up to, though their theories regarding where that Tether is moving around to and to what ends are unverified – and pretty hard to back up with hard facts without access to information about exactly how the respective concerns in question operate.

However, while relatively neutral observers are still saying that the bearish trend of the market is not going to turn around yet – and while indicators like the Network Value Transaction Ratio and Signal are still far from showing signs that the fundamental strength is returning to the Bitcoin market, it would be a very brave investor that would take today’s turn of fortune as a signal of longer term recovery for Bitcoin or the stellar-performing XRP.

 





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