Yesterday, the value of Bitcoin (BTC) skyrocketed and broke several hurdle points on the upside. The value of the digital currency increased significantly after declining below the $6,300 mark last week.
Bitcoin (BTC) surged towards the $6,900 mark on the Kraken exchange and over $7,700 on Bitfinex yesterday. The massive increase in the value of the digital currency is attributed to the trading of Tether (USDT) on Bitfinex.
The value of USDT, which is meant to remain close to $1, declined toward the 88 cents mark recently. This cause great worries and most traders quickly exchanged their USDT coins to Bitcoin (BTC). This resulted in a sharp increase in the value of the digital currency in a matter of hours.
Unexpected Hyperinflation in Venezuela Results in a Massive in Bitcoin (BTC) Trading Volume
Bitcoin (BTC) has also seen an enormous increase in its trading volume over the past twenty-four hours. This is attributed to a worsening economic crisis and the unexpected hyperinflation in Venezuela. Bitcoin (BTC) trading volume in the South American nation has reached a record high as a huge amount of Venezuelan bolivars have been spent to buy Bitcoin (BTC) over the past few days.
According to Coin Dance, the total amount of Bitcoin (BTC) traded in the country this week is worth about 900 million bolivars. A similar trend happened last week, as the total amount of Bitcoin (BTC) traded in the country was worth about 850 million bolivars. This week’s Bitcoin (BTC) trading volume is one of the highest the nation has ever witnessed.
Nevertheless, this massive increase in trading volume can’t be credited only to the sharp decline in the value of Bolivar. Last week saw the highest number of BTC traded in the nation, as 1,089 Bitcoins, worth about $7.1 million, were traded by residents. So far this week, about 970 Bitcoins have been traded. This means last week’s record could be broken this week.
Venezuela to Experience a High-Level of Inflation
The massive increase in Bitcoin (BTC) trading volume in the Latin American nation comes at the time when the IMF (International Monetary Fund) predicted that Venezuela will experience a hyperinflation. The IMF predicted that the nation would experience an increased inflation rate of about 1,370,000% by the end of 2018.
Trump’s White House Is Concerned about the Bitcoin Mining Dominance of China
About 70 percent of Bitcoin (BTC) mining firms are in China. This gives China the upper hand as it controls a greater percentage of Bitcoin (BTC) mining pools in the world. A lot of investors and traders are worried about the level of control China has over Bitcoin, with Bitmain Technologies mining over 50% of the world’s Bitcoin (BTC).
It appears Donald Trump’s White House is now concerned about the Bitcoin dominance of China. A Ripple Inc. suggested that the US administration has shown interest in the adoption of XRP (XRP) to offset the Bitcoin strength of China.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) is currently worth $6,613 after a decrease of less than one percent in the past twenty-four hours. The current market cap of the digital currency is $115.12 billion with a trading volume of $6.04 billion over the past twenty-four hours.