Bitcoin (BTC) suddenly swerved toward $6,700, an unexplained move after days of price weakness. Contrary to being the start of a rally, this price move may be an anomaly, as the latest developments show. Here are the five reasons for the latest price spike:

Bitfinex contagion: As it is widely known, Bitcoin is often traded by bots, which activate on any larger price movement and amplify it. This is the reason why when the price rose on Bitfinex on Monday at around 06:30 UTC, all other exchanges followed. The price of BTC saw upward bidding and easily reached levels above $6,600.

Tether (USDT) Breaking the Dollar Peg: The USDT digital asset still serves to provide a dollar-like price for Bitcoin. However, USDT is not worth exactly one dollar, but slightly below that. One of the indicators is the “Bitfinex premium”, a higher BTC dollar price, which reflects the lower Tether value. Tether has been losing trust since losing the backin…

This article appeared first on Cryptovest

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