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Bitcoin price suddenly spiked over the weekend and the stablecoin industry has been attributed to the change in price.
Bitcoin price broke out of a major resistance level of $60K over the weekend putting an end to its correction period. On Binance, Bitcoin price opened yesterday trading at $59,302.32 and closed the day trading at $61,597.92, the new all-time high. However, the asset has retraced approximately 4.42% in the past 24-hours to trade around $58,077.05 at the time of writing.
Besides the drop in market price, Bitcoin’s daily trading volume had dropped by over 20% according to Coinmarketcap. Notably, Bitcoin has a reported market capitalization of approximately $1.08 trillion with its 24-hour trading volume at $47,682,784,083.
Market Aspects that Affected the End of Bitcoin Price Correction
Bitcoin price suddenly spiked over the weekend, whereby the stablecoin industry has been attributed to the change in price. Notably, most crypto traders and investors use stablecoins like USDT, USDC, or BUSD to hedge against Bitcoin and other digital assets in a bear market. According to market data provided by CoinGecko, the top three stablecoins have jumped by double digits in the past thirty days. Tether’s USDT has a volume of $90 billion and a market capitalization of $37 billion jumped 24.0%. As for USDC and BUSD, they jumped 34.4% and 88.9% respectively in the past 30-days.
Based on that and other on-chain data analysis, the crypto industry remains significantly bullish on a long-term basis.
Bitcoin has attracted institutional investors’ attention, particularly fueled by high fiat inflation. Most central banks led by the United States Fed and also China have increased the rate of fiat injection to the market during the pandemic. Mind you, the United States Fed government is in the process of distributing a $1.9 trillion stimulus to cushion the economy from the crisis. Reportedly, the United States Fed printed 20% of the total dollars in circulation in less than a year. As a result, institutional investors are seeking better alternatives, whereby the crypto industry and mostly Bitcoin has won several companies’ balance sheets. Led by Tesla Inc (NASDAQ: TSLA) that indicated it purchased $1.5 billion worth of Bitcoin.
The Altcoin Market High Volatility
The altcoin market too experienced increased volatility over the weekend. Notably, digital assets with low trading volume and also market capitalization led to the spike over the weekend. Some of the notable volatilities include Chiliz (CHZ) that was trading around $0.630926 at the time of writing according to CoinGecko.
Worth noting, CHZ is now up approximately 11000% in the past year, but more importantly, it has gained 1650%, and 1135% in the past one month and two weeks respectively.
Another altcoin that experienced heightened volatility over the weekend was Harmony (ONE). The asset has jumped over 52% during the past 24-hours.