Introducing The Daily 2, the all new video series by proclaimed crypto evangelist, Brian Wilson.
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In his latest video, Brian talks about how the price of Bitcoin fluctuates so much, in line with similar movements from the likes of USDT. Cryptocurrencies are volatile, therefore we need to understand what makes them move in order to make better investment decisions.
Check out what Brian has to say about the latest Bitcoin movements:
On today’s episode we will talk about the crazy price fluctuations we saw today in bitcoin and tether, among others, and the reason why.
Today October 15th, 2018, at around 2am eastern, 3pm here in japan, there was a massive spike in the price of bitcoin, reaching as high as around $7500 per bitcoin. At the same, tether, also known as USDT, which is supposed to be pegged 1 for 1 to the US dollar, dropped as far down as $0.88.
It became abundantly clear that the rise in bitcoin price was directly correlated to the USDT selloff. You can find evidence of this because exchanges such as Binance, Bitfinex, OKEX and kraken all saw the rapid spikes. The common factor between these exchanges? You guessed it, all of them are platforms that support USDT. Other exchanges, such as Coinbase, that are non-tether-enabled platforms, saw a more modest increase in the price of bitcoin.
Things have levelled off since then and as of right now, just after 1am in japan, around noon time eastern, the price of bitcoin, according to Coinmarketcap is roughly $6,650. While USDT is trading at about $0.96.
There have been questions recently about the solvency of tether, as many believe that tether may not have the supposed us dollar reserves to backup all of the USDT in circulation. This caused a selloff of USDT into bitcoin and other crypto currencies.
There have also been questions about the solvency and possible fraudulent activities of Bitfinex, which has ties to tether, but Bitfinex is said to be giving an update shortly about their banking situation and that may very well garner renewed trust in the exchange, and trust in tether.
As of now, things seem to have stabilized in the crypto markets
Well, that’s my 2 minutes. As always, if you have something you’d like me to cover specifically or just want to say hi, please comment below… and if you haven’t subscribed yet, you know what to do.
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Original Post: The Daily 2 – (Episode 2) Why Does The Price Of Bitcoin Fluctuate So Much?