Wednesday, 12 December, 2018

Bitcoin (BTC) at an 8% premium on Tether-based (USDT) exchanges

Crypto Tether Forces Bitcoin to Achieve $7,500 Crypto Market Adds $20 Billion Nick Chong Crypto Tether Forces Bitcoin to Achieve $7,500 Crypto Market Adds $20 Billion Nick Chong
Ginger Lawrence | 18 October, 2018, 21:58

The data from CoinMarketCap shows that the daily trading volume of BTC has spiked from $3 billion to $7 billion in the last day (24-hours), more than doubling. According to cryptocurrency analysts, this statement could go a long way toward stabilizing USDT.

Interestingly, Binance is one the largest holders of USDT tokens, with over 768.5 million in its reserves, according to a wallet richlist posted on Tether.to.

The sell-off in the crypto is surmised to be the reason behind bitcoin's Monday rally. Yesterday, on October 16, Tether added a total of 250 million USDT tokens to its treasury. Like a domino effect, the prices of these major virtual currencies rocketed on crypto-only exchanges such as OKEx and Huobi.

The drastic unloading of USDT has caused the price of the stablecoin to dip towards $0.94. The stablecoin also has a special relationship with Bitfinex, which trades nearly all its cryptocurrencies with the USDT. On October 9, Bitfinex sent $100 million USDT tokens followed by another $200 million on October 14. - "There are also questions about Tether's relationship with Bitfinex, one of the world's biggest cryptocurrency exchanges".

In a word with CoinDesk, Bitfinex's communications director Kasper Rasmussen said that "the supply of USDT decreases upon redemption".

Last week, well known cryptocurrency exchange Bitfinex suspended deposits in fiat currency.

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Crypto trades often use stablecoin to quickly execute their trades in the crypto market. Exchanges are not the only goal for coins that are tied to fiat currency, or other commodities, as they offer a hybrid of the versatility and programmability of crypto with the stability of more traditional fiat currencies and assets. Prior to 2018, USDT was the only stablecoin in the market, which compelled industry players to depend exclusively on Tether. "Some market watchers have alleged that trading in Tether's coins on Bitfinex, which has the same CEO as Tether, has helped prop up Bitcoin's price".

In response to the events, several influencers from the crypto space have decided to make comments about the entire Tether-Bitfinex saga.

At the same time, Tether's USDT/USD pair lost came crashing down below 0.95-fiat at the beginning of the Asian session. At the Kraken exchange, the price is 95 cents, while at Binance the price is 96 cents. For instance, even up to this moment, traders remain unsure whether they can redeem USDT at 1:1 ratio to the USA dollar, given the collapse of Tether's banking partner, Noble Bank.

While Tether continues to struggle, OKcoin announces four new stablecoin pairing options.

The cryptocurrency Tether is making a downward move, losing 2.38 percent against the dollar and 8.08 percent against bitcoin. For every unit of Tether, there are expectations that there is a unit of US Dollar to it. Alt coins such as Gemini Dollar and TrueUSD are also up, as traders pulled back from Tether.