The Bitcoin price (BTC/USD) has hit a more than a one-month high of near $7,000 thanks to a sudden spike that occurred in today’s morning trading.
Today’s surge has been unexpected, as Bitcoin struggled in the past few sessions. The digital coin finished yesterday’s session at $6,290.93, posting its fourth consecutive close below the $6,300 mark. In addition, the cryptocurrency’s inability to capitalise on the slump in global equity markets last week raised questions whether the coin has the potential to become a “safe haven” asset.
However, today’s early trading has seen the Bitcoin price surging to as high as $6,965.09, which was its highest level since September 5. The coin has seen a big pull-back in subsequent trading and its price is currently hovering around $6,630, according to data from digital currency tracker Coinmarketcap. Still, Bitcoin’s current price level remains significantly higher than the coin’s Sunday close of $6,290.93.
Other major digital coins have seen similar spikes, with most top 10 cryptocurrencies seeing big gains over the past 24 hours. The only exception to this has been the USD-pegged stablecoin Tether (USDT), which fell by as much as 8%, as its crypto peers surged. This slump is very unusual, given the fact that Tether typically hovers around $1.
The USDT slump provides a possible explanation for the sharp increase in the prices of other digital currencies. Tether used on many crypto exchanges as proxy for the US dollar in crypto trades. A Tether sell-off could propel other coins higher.
In today’s trading, the Bitcoin price stood at $6,63385, as of 09:56 BST. The coin has gained 4.8% in the past 24 hours. Its total market cap currently stands at almost $115 billion, which represents 54.3% of the combined value of all digital coins.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.