Bitcoin price (BTC/USD) surges to over one-month high near $7,000


What we know for certain up to this point is that the price growth of BTC isn't organic, wasn't part of the expected dynamics (as pointed out by Tone Vays in his technical analysis), and Tether is still an instrument to manipulate the price on an extended number of exchanges which make use of it.

The partying on the streets soon ended with the price falling below the $6,300 mark to around $6,220.

Within 48-hours, the BTC price surged from $6,150 to $6,549, propped up by a cluster increase in daily trading volume.

What's behind the massive uptick that will have HODLers around the world waking up smiling?

In a dramatic reversal of sorts, bitcoin price and cryptocurrency markets, which had been in a swoon for most of this month, surged on Monday morning even as the price of Tether, a controversial stablecoin which trades at parity with the USA dollar, declined. Investors seeking to acquire Tether should first buy Ethereum or Bitcoin using an exchange that deals in U.S. dollars such as Coinbase, GDAX or Gemini. "Some market watchers have alleged that trading in Tether's coins on Bitfinex, which has the same CEO as Tether, has helped prop up Bitcoin's price".

How Stable Is the Most Popular Stablecoin?

We have seen this year a flood of new stablecoins which should ease our worries. Then there was the outright accusation in December 2017 that there weren't actually enough dollars backing Tether, throwing its 1:1 parity into question.

Insult was added to injury with Bitfinex's reluctance to open up its books. One Tether token can now be bought for about $0.96 or 0.00014332 BTC on popular exchanges including LBank, OKEx, DigiFinex and Bitfinex.

One of the banks is legitimate, while the other is an unknown entity that also has "Deltec" in its name. Consequently, Bitcoin exchanged at $7,500 Dollars on Bitfinex. Like a domino effect, the prices of these major virtual currencies rocketed on crypto-only exchanges such as OKEx and Huobi. Despite the failure to hold onto gain the current price still represents a good performance of Bitcoin compared to yesterday's low of $6,300. While no official statement had been made by Binance, a photoshopped image of a Binance announcement caused the market to panic.

However, some fear that the worst has yet to come for both the Tether Foundation and Bitfinex itself, as these two organizations, mostly the former, have been seeing mounting pressure from all sides.

So, if this is the case, is there any reason for Bitcoin fans to celebrate?

There are a number of reasons why the price of bitcoin rose unexpectedly. Trading ranges - on the four-hour chart - are very tight with no clear direction for the coin, a sign that a sharp breakout may be on the cards. There have been concerns regarding Tether's liquidity for quite some time now, and the lack of public third-party audits have cast a dark shadow over this project.