Bit-comment: Bitcoin bounced after the drop

Bitcoin made a sharp rebound on Wednesday evening after touching levels near $6,500. An additional inspiring signal was a significant increase in trading volumes along with the price. During the night, Bitcoin bounced back more than 8% and changed hands for $7,200. The daily trading volume soared by $10 billion while bitcoin dominance index reached 68.1%. All the leading altcoins supported the price dynamic of the first cryptocurrency, adding 4-10%.

One of the possible reasons may be a jump in the volume of monthly futures on the Bakkt platform to 7.102 BTC ($51mn) per day. Institutional investors, who are often blamed in the community for disrupting the growth wave, as it turned out, can not only “shorten the market”, but also buy out the drawdowns. According to Whale Alert, Tether created 25 mln USDT (25,140,315 USD).

Often such events are associated with the market “pumps”. Besides, earlier, it was noticed that USDT had gained volumes on the decline of the crypto market, again becoming a platform for a tactical retreat.

The FxPro Analyst Team