Bitcoin rose sharply on Monday after a credit crunch on a key cryptocurrency swap triggered a run on # 1 digital currency.
After the start of the day around 6,200 dollars, Bitcoin
BTCUSD, + 4.26%
listed at the Octopus Exchange at an intraday high of $ 6,960.68. On Bitfinex, the third largest cryptocurrency exchange by volume, Bitcoin's price was trading at an intraday high of $ 7,788, according to CoinMarketCap data, yielding a premium of more than 10%.
The increase in Bitcoin was driven by Tether (USDT), the Stablecoin on the Bitfinex exchange, which traded at 88 cents. A Stablecoin is traditionally at or very close to $ 1
"People were willing to pay more to get Bitcoin and pull USDT off as credit risk worries swirled," said Charles Hayter, co-founder of CryptoCompare.
Tether has been closely examined in the past to see if he actually holds enough dollars to support his Stableco.
On Monday, a single Bitcoin changed hands for $ 6,527.24, an increase of 4.4% since Sunday at 5pm. Eastern Time in Kraken Exchange. While on Bitfinex, Bitcoin was still trading at a premium at $ 6,908.
Read: How Bitfinex, Tether raises eyebrows in the cryptocurrency market
The jump in Bitcoin has raised smaller coins called Altcoins. ether
ETHUSD, + 3.03%
rose 3.1% to $ 201.05, Bitcoin Cash
BCHUSD, + 1.05%
increased 1% to $ 442.60, Litecoin
LTCUSD, + 2.46%
was 2.2% at $ 53.07 and XRP
XRPUSD, + 3.61%
is traded at 44 cents, an increase of 6.4%.
Bitcoin futures track spot prices higher on Monday. The Cboe Global Markets October contract
XBTV8, + 3.18%
traded 3.4% higher at $ 6,410, during the CME Group October contract
BTCV8, + 3.64%
rose 3.6% to $ 6,405
Fidelity Offers Crypto Services
Fidelity Investments announced Monday that it has a new company on has brought the market that will offer crypto-commerce and security offerings to customers.
The company, Fidelity Digital Asset Services LLC, will provide services to hedge funds, family offices and other market participants, according to a press release.
"Our goal is to make digitally innate assets like Bitcoin, more accessible to investors," said Abigail P. Johnson, Chairman and CEO of Fidelity Investments in a statement.
Further reading: Fidelity Launches Cryptocurrency Trading Platform
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