Tether has surged past XRP in market capitalization for the second time running, in less than 10 days. It has become the third most valuable cryptocurrency based on the rush for digital coins with more stable prices.
Tether, trading at $1 at the time this report was drafted, has a market capitalization of $8.803 Billion, according to data obtained from coinmarketcap. It is now bigger than XRP, whose market capitalization is roughly $8.58 billion now.
Tether is currently second only to Ethereum (ETH) as the most valuable altcoin in the cryptocurrency market.
What you need to know: Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies, like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol USDT.
Meanwhile, XRP (the currency of Ripple) dropped to the fourth-largest cryptocurrency by market capitalization, as the price of the digital coin has been a bit unimpressive lately.
The growth of Tether’s market capitalization has largely resulted from tether seeing massive buying surge from countries like China, because of its quality of being a stable coin.
What are Stablecoins?: Stablecoins are cryptocurrencies created to minimize the price swings that occur in a crypto asset. They are usually pegged to fiat currencies and often exchange-traded commodities.
Global Investors and traders are using it to give their investment portfolios exposure to the US Dollar during these times when uncertainty is high as a result of the worst pandemic (COVID-19) known to man.
Bitcoin loses $1500 in 3 mins, pigs get slaughtered in BTC market
Bitcoin rose above $10,000 for the first time in six weeks in a move that seems to show a bullish momentum has the $10,000 resistance mark been broken.
Some hours ago, Bitcoin rose above $10,000 for the first time in six weeks in a move that seems to show a bullish momentum as the $10,000 resistance mark been broken.
However, during the rally, over $100 million worth of Bitcoin short positions were liquidated as Bitcoin plunged by nearly $1,500 in less than 3 minutes, before rebounding to around $9,458. Bitcoin is trading at $9,540 4 am local time.
Bitcoin’s plunge was bad news for the bulls. By falling back below the $10,000 psychological support, it has shown a likely downward trend as investors start to close their positions.
According to data retrieved from crypto derivatives platform, Skew.com, an approximate $96 million worth of long positions were wiped with this lower move. This is lower than the $125 million liquidation event that took place when BTC took out $10,000 yesterday, suggesting that the market was leaning to such a trend.
Things you need to understand about Bitcoin’s volatility
The price of Bitcoin is so volatile because of its high use for financial gain by investors and crypto traders. As such, individuals and hedge funds sell and buy Bitcoins like they would do for any other financial asset (Stocks, bonds) with regulatory limitations.
One of the key biases touted by Bitcoin bears is that Bitcoin remains below the key resistance of $10,500 and has refused to break that mark since early 2020.
$10,500 is the level at which the bitcoin price was rejected during two crucial rallies over the past 12 months.
The fact that BTC has made successive takes at the level without breaking past it suggests that the crypto market is still situated in a downtrend.
Robert Sluymer of Fundstrat Global Advisors, for instance, recently commented on the importance of the level. He said:
“Next directional move on tap for BTC’s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week SMA) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-DMA.”
Nigeria holds the aces in the peer to peer use of Bitcoin
Nigeria leads the pack in the peer to peer use of bitcoin in African continent with more than $35 million, while the closest rival, South Africa
Nigerians’ use of Bitcoin in the past month has surged exponentially, as the use of Bitcoin for peer to peer lending in the country recorded a feat.
Recent statistics showed that Nigeria led the pack with more than $35 million, while the closest rival, South Africa, had a transactional value of just $7 million during the last thirty days, according to usefultulips (a Bitcoin analytic data provider).
Among the top countries in the last 30 days leading in peer to peer Bitcoin transactional trades on the African continent are:
Nigeria – $35, 147, 166
South Africa – $7, 130, 711
Kenya – $6, 904, 750
Ghana – $4, 007,376
Central African Republic – $336, 579
Tanzania – $220, 463
In addition the report showed that Nigeria’s transactional value of Bitcoin’s peer to peer lending outsized all African countries totaling ($18, 599, 579)
What you should know: In Bitcoin’s case, Peer to peer is the exchanging of Bitcoins between parties (such as individuals) without the involvement of a central authority.
This means peer to peer use of Bitcoin takes a decentralized approach in the exchange of Bitcoins between individuals and groups.
It shows that Bitcoin’s long-running narrative as the “digital gold” for hedging against global economic turmoil is gaining the trust of Nigerians for payments and transfers.
The financial market turmoil triggered by COVID-19 has definitely changed the way Nigerians view the whole financial system as data also obtained from Google trend shows Nigeria leading the pack around the world in Bitcoin searches. This is a testament to the fact that Nigerians truly love their Bitcoin.
Bulls push Bitcoin pass $10,000, as America’s turmoil intensifies
Meanwhile, popular Hedge Fund manager, Michael Novogratz, said Bitcoin’s bullish momentum might have just started. His forecast was based on quantitative easing done by global central banks and the high geopolitical uncertainty around the world.
The flagship currency has finally done it. Just hours ago, at around 11.30 pm Nigerian time, Bitcoin surged pass $10,000 for the first time in weeks, touching price levels as high as $10,250. This marked a 7% jump in gains from where Bitcoin was trading prior to the move, according to data obtained from Coinmarketcap.
While commenting on the incredible performance, the Chief Investment Officer at Orthogonal Trading, Joshua Green, simply said, “ETH broke out already, BTC now having its turn… The macro and fundamental scenario is very bullish, and the market has been shorting into $10,000, under-allocated above $10,000.”
In addition, popular Hedge Fund manager, Michael Novogratz, said Bitcoin’s bullish momentum might have just started. His forecast was based on quantitative easing done by global central banks and the high geopolitical uncertainty around the world.
“$BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA (United States of America) adds to the narrative. Budgets are going one way and it is the opposite of balanced. When 10k goes it will move fast. Get on the train,” Novogratz said.
$BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10k goes it will move fast. Get on the train.
— Michael Novogratz (@novogratz) June 1, 2020
This echoes the words of Tesla CEO Elon Musk and billionaire hedge fund manager Paul Tudor Jones, who have both stated that the surge in government spending and rising debts are favourable to Bitcoin’s macro fundamentals.
It is worth noting that Bitcoin’s bullish move above the strong price resistance level of $10,000, occurred as America’s President Trump ordered the National Guard to disperse masses of protestors close to White House grounds. A wave of violence has been sweeping through American cities, following the tragic death of George Floyd, a black American citizen who was killed by a white police officer.