The Bitcoin price (BTC/USD) has edged higher on Tuesday, in an attempt to secure a stable position above the $6,600 mark.
The original cryptocurrency saw a big spike in yesterday’s early trading, surging to an intraday high of $6,965.06, according to Coinmarketcap’s price average, which takes into account price data from a number of cryptocurrency exchanges around the world. The spike was especially pronounced on major exchange Bitfinex, where the Bitcoin price surged to over $7,700.
The sudden uptick, which affected not only Bitcoin, but the broader crypto market, as well, was apparently driven by a steep and rather unusual drop in the price of the USD-pegged stablecoin Tether (USDT). Tether is used as a substitute for fiat on some of the biggest crypto exchanges in the world and is said to have close ties to Bitfinex.
“People were willing to pay more to get hold of bitcoin and get off USDT as worries circulated about credit risk,” CryptoCompare co-founder Charles Hayter said yesterday, as quoted by MarketWatch.
As the Monday session progressed, the market cooled down, with digital coins pulling back to lower price levels. Still, most crypto assets managed to keep large portions of their initial gains. Bitcoin in particular closed the session at $6,596.54, up from its opening level of $6,292.64.
The market like received an extra boost from yesterday’ announcement that Fidelity Investments had launched a new company to offer crypto trading and security products to clients.
“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors,” Fidelity’s chairman and chief executive officer Abigail P. Johnson said in a statement, as quoted by MarketWatch.
Bitcoin has managed to reclaim the $6,600 mark on Tuesday, thanks to a sharp rise that occurred in recent trading. As of 09:37, the Bitcoin price stood at $6,607.94, down 1% from the same time yesterday.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.