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PayPal Wasn’t Behind Bitcoin’s Latest Surge Above $13K And Here’s Why

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Stefan

PayPal wasn’t behind the latest Bitcoin surge which led the coin above 13,000 according to an analyst which we are going to read more about today in our latest Bitcoin news.

Bitcoin logged a supersonic bull run at $13,000 for the first time in more than a year. The rally started after PayPal announced its foray into crypto which led analysts to believe that the $138 billion global payments company drove the latest BTC Adoption. At least one of them disagreed as in the tweet posted a day ago by the analyst who claimed that BTC went upwards because of the abundant supply of Tether’s stablecoin USDT:

 “I don’t believe that the recent BTC rise occurred due to the PayPal news. It more looks like a “Xi-pump.”

Bitcoin surged by $3,000 in October 2019 after Mr. Jinping’s blockchain endorsement. Source BTCUSD on TradingView.com

With the pump inspired by Xi, the analyst was referring to the Bitcoin price rally from October 2019 when China’s President Xi Jinping endorsed the underlying blockchain technology in public and right after his announcement, there was a 40 percent surge which reversed its direction lately amid the renewed sell-off. The analyst noted that the PayPal pump was no different than the Xi one as they both coincided with the increase in USDT supply. It means that the capital that was already inside the crypto market got channel towards Bitcoin as no significant money entered the space from the outside.

btc chart
Bitcoin-Tether correlation, as presented by Crypto Hamster. Source USDT on TradingView.com

Placing Tether’s market cap against Bitcoin’s price shows a stark correlation between the two as the analyst noted that with the increase in USDT supply, the BTC/USD pair always shoots higher. But when the stablecoin’s curve flattened or dropped, BTC/USD dropped as well. When a new tether is printed, Bitcoin goes up, when Tether’s market cap goes down, Bitcoin drops too. The cautious tone propelled by the pseudonymous analyst seemed well-spread across the crypto market. The daytrader favored the PayPal-led rally but he was concerned about Bitcoin’s ability to hold the $13,000 as its new support, as he said:

 “Until BTC closes and holds above $13K, I’m not betting on ATH test. Paying close attention, IF (ONLY IF) I trigger short set-ups in the coming days around or above that level, I will be inclined to hold as a short swing. I could see the corn go as low as 8k area worst case.”

Another daytrader reminded the community about the candles on the CME bitcoin futures chart close to the $11,000 as the community believes that BTC will fill in the gap of 98-99% of the time. This means that the crypto could correct lower to $11,000:

 “They will eventually be filled, which is why I think entering long term buys above 13K is a terrible idea.”

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