Bitcoin’s price is not one single entity, and the price depends on multiple factors. In just a few days, Bitcoin abandoned its usual risk profile, where Japanese and US-based investors set the pace.
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As the price shrank first below $9,000, and later below $8,500, the components of Bitcoin trading had a tidal change. BTC slid by around 9% net in the past week, to $8,465.98.
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The share of Japanese Yen trading fell from a share of around 40% to just 16%. US dollar volumes increased to 34%, but also remain low in absolute numbers, at around $70 million in 24 hours.
Tethers Take Over the Show
The most impressive change is in the activity of Tethers (USDT). The tokens, which have a limited supply, have a growing influence on the markets. On some exchanges, USDT is a safe haven from price fluctuations, though not a substitute for actual fiat. The share of USDT trading for Bitcoin deals is more than 34%, a record. At the same time, USDT trading takes up more than 16% of all crypto deals.
One of the reasons for the recent BTC drop is the belief that the hype around the Consensus 2018 conference may have caused some preemptive selling. Believing that BTC would be sold during the conference became a self-fulfilling prophecy.
But the drop in BTC prices already started ahead of last weekend. Trading volumes also dwindled overall, to below $7 billion in 24 hours. For now, it is unclear what causes the fluctuation, and some analysts see BTC going down to $7,500.
For now, it is unknown if the current trading profile of Bitcoin is just a fluke, or will remain the usual state of the market. While some Bitcoin selling props up altcoins, Tethers remain the preferred store of value and protection against volatility.
Tethers also prop up the price of Bitcoin Cash (BCH), where more than 29% of trading volumes happen against the token.
This article appeared first on Cryptovest