Bitcoin experienced its first $1,000 rise weekend since 2017, reaching its nine-month highs last week. The rise came even after New York attorney general’s investigations into Tether.
Bitcoin moves up and up
The largest cryptocurrency in the world moved by over $1,000 this weekend, reaching its highest level since August. The rebound that began in April was somewhat dampened because of the New York attorney general’s investigation into Bitfinex and Tether. However, the coin quickly resumed its upward movement.
Bitstamp data suggests that the coin was trading for $7,445 on Sunday afternoon in Hong Kong, marking a 6.9% rise. On Friday, the coin closed at $6,290.24. Pricing from both Bitfinex and Bitstamp suggest that the five digital assets Bloomberg Galaxy Crypto Index were up by over 8% this weekend.
Bitcoin price has doubled since Dec. 14, and Bitstamp data shows that it is rising for the six-day straight. This rally is also coinciding with the growing trade tensions between the US and China. The global stock market is facing a downturn due to the impending trade war and Bitcoin could be benefitting because of it.
The Achilles’ heel of digital coins
While the price of Bitcoin is rising, the overall cryptocurrency market is facing its regular troubles. The recent controversy came in the form of allegations from the New York Attorney General’s office. The AG Letitia James alleged that Bitfinex tried to cover an $850 million loss by using funds from its sister company Tether. Bitfinex is one of the largest crypto exchanges in the world while Tether is a popular stablecoin. The Bloomberg Galaxy Crypto index tumbled by 11% in the week ending April 26, marking the biggest one-week slide in 2019.
Later, Bitfinex denied the allegations of co-mingling of assets and wrongdoings and suggested that $850 million were actually seized by various government authorities. Tether then made a shocking revelation, suggesting that it holds only 74% of its outstanding coins in cash and cash equivalents. The investigation has opened new doors of an investigation into a Panamanian firm that is not just related to Bitfinex but also to Quadriga CX, a popular Canadian crypto exchange that went bust and had to pay millions of dollars to its investors.
The Bitfinex controversy then made way for a high-profile hacking at Binance, the largest cryptocurrency exchange in the world. Hackers stole 7,000 Bitcoins worth $40 million from the exchange, causing a major stir around the world. It also started a new controversy regarding security in crypto exchanges.