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Bitcoin Back at $5,400 Following Another Profitable April

May 2, 2019 at 22:15 by Matt Jackson

Having slipped a little earlier in the week, following the Tether debacle, Bitcoin prices have risen back to contest the $5,400 mark. The cryptocurrency also enjoyed a profitable April, for the consecutive year and signalling a third straight month of gains. While some analysts are cautious to call it a bull market, there are many investors and watchers that are pointing to positive signals that suggest Bitcoin prices have hit bottom.

Stablecoin, Tether, caused a major upset in the industry this week, when on April 25, the New York Attorney General’s office announced that iFinex, the company behind Tether and Bitfinex, had used funds from Tether to cover up an $850 million loss of funds. Tether is considered a vital component in the cryptocurrency market, especially for traders. In fact, CryptoCompare have said that USDT is used in about 80% of all bitcoin trading. Typically, news with this kind of sentiment, and with such potentially negative connotations, would lead to a slump in prices. However, analysts have said that it is a sign of the positive sentiment towards the market at the moment, that the fall was minimal, and the market already looks set to rebound.

Bitcoin had reached $5,600 during last week’s trading, but when news of the Tether incident hit, prices dropped around 10% down to $5,100. However, the digital gold rebounded from this support. Having hovered around $5,100 for 5 days, it pushed back through $5,400 resistance on May 2.

Signs are positive for investors that have weathered a long bull run. Research papers released by Delphi Digital and Adamant Capital both point to prices having reached a bottom, and suggesting that further increases are on their way. What’s more, popular US trading app Square Cash has said that trading volume for cryptocurrencies has gone parabolic, certainly indicating a likely increase the number and size of Bitcoin acquisitions being made.

Bitcoin is currently trading at $5,410. Other major cryptocurrencies are trading at $159.53 for Ethereum, $72.14 for Litecoin, and $0.30 for Ripple, at 23:00 GMT.

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