- Cryptocurrency market is growing strongly.
- Bitcoin jumps as high as $7,200 amid speculative interest.
- Technical factors and Tether sell-off may be behind the move.
Cryptocurrency bulls came out of the blue and took the revenge this Monday morning as all major coins recovered losses of the previous week amid a strong rally that disrupted the lull of the Asian session. The market capitalization gained over $14B in a matter of hours, leaving traders, experts and analysts guessing what might have triggered the movement.
Three possible factors might have played their role in engineering the bullish assault across the cryptocurrency market.
The first one is technical.
Bitcoin reached the critical threshold around $6,000 with lots of protective orders located on the approach to this strong support. As the bearish momentum faded away, new buyers flooded the market and pushed the price higher, while a sustainable break above $6,300 extended the upside.
The second one is speculative.
A sharp movement created favorable conditions for arbitrage as Bitcoin price varied and different cryptocurrency exchanges. Thus the highest level was registered at Bitfinex, where BTC/USD traded at $7,200 handle. Arbitrage has attracted speculators to the market, pushing the price even higher.
The third one is manipulative.
The last but not the least one is related to Tether, USD-backed stable coin, which is the only digital asset out of top-10 that is being sold-out this morning. This usually happens when traders aim to buy other coins.
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