Bitcoin (BTC) Price Analysis
- Tether liquidity fears drives prices.
- Fidelity adds a layer of credibility to the cryptocurrency space.
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Bitcoin (BTC) Price Spike – Further Upside??
Volatility returned to the cryptocurrency space in style Monday with double-digit gains seen across the board. Market rumours circled that stable coin Tether (USDT) was having problems one of the major exchanges, causing its price to trade as low as $0.94. Tether and the US dollar are pegged at 1:1. With the exchange in question, Bitfinex, also temporarily suspending deposits, it looked as though investors moved out of Tether into other cryptocurrencies. This price action – shown on the chart below – was quickly sold-off but did decisively break the downward triangle, and needs to be watched carefully. If BTC can close above this triangle over the next few sessions it will indicate renewed bullish sentiment that could push the price back to the 200-day moving average and the spike high between $7,200 and $7,300.
Investment titan Fidelity announced Monday that it was spinning off Fidelity Digital Assets to provide institutional clients with bespoke cryptocurrency investment advice alongside trading, clearing and custodial services. According to Fidelity Investment Chairman and CEO Abigail Johnson the launch will open up cryptocurrencies to a wider base of investors. Fidelity’s announcement lends a layer of credibility to a market that has seen prices slump over the year while market turnover has fallen by over 75% from its peak.
Bitcoin (BTC) Daily Price Chart – October 16
What’s your opinion on Bitcoin and can the market rally further? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at nicholas.cawley@ig.com.
--- Written by Nick Cawley, Analyst.
