Bitcoin Price Jumped As Tether's Fell. Why?

Bitcoin Price Jumped As Tether's Fell. Why?

At its highest point, the price of Bitcoin reached $7,500 on Bitfinex. Investors seeking to trade Tether should first buy Ethereum or Bitcoin using an exchange that deals in United States dollars such as Changelly, Coinbase or Gemini.

Around the same time, Bloombergsuggested that Bitfinex had created a complex structure involving third party Panamanian bank accounts in order to maintain banking access and keep their operations online.

However, the Bitfinex decision to pause fiat deposits triggered some reactions in traders who turned to Bitcoin (BTC) and other cryptocurrencies, concerning the Tether (USDT) reserves.

Tether holders are anxious their funds might not be backed by United States dollars, as they should be. For instance, even up to this moment, traders remain unsure whether they can redeem USDT at 1:1 ratio to the U.S. dollar, given the collapse of Tether's banking partner, Noble Bank.

No. All major fiat-to-crypto exchanges including Coinbase and Kraken are now trading at around the $6,600 mark.

Disclaimer: This is an opinionated article, and may not reflect the views of Blockmanity. Dogecoin creator Jackson Palmer has taken time to observe how USDT momentarily went below the 90 cent threshold on exchanges like Bitfinex and Kraken.

The premium on Bitfinex indicates that Tether holders may be heading for the exit.

However, in response to his tweet, others speculate that the reason for the drop in Tether's value was due to a misunderstanding that Binance were delisting the coin based on fake information circulated on social media. "Such price supporting activities are successful, as Bitcoin prices rise following the periods of intervention".

The discount has bitcoin trading at something of a premium against tether on exchanges with USDT/BTC trading pairs. According to the charts on CoinMarketCap, there is more than 20% uprooting in Tether's valuations in the last week. Whether this is due to auditor resistance or Tether seems up for debate, but regardless, the situation has only fanned the flames of investor uncertainty.

Tether Ltd. marketed its cryptocurrency as a way to mediate the sector's volatility-offering the safety of the dollar along with the speed and anonymity of a digital currency. Tether has a market capitalization of $2.40 billion and approximately $5.05 billion worth of Tether was traded on exchanges in the last 24 hours.

Tether sell-off triggered by Bitfinex issues that caused the exchange to temporarily stop fiat deposits led to a massive bullish assault on the cryptocurrency market on Monday. The closest Tether ever came to an audit was a three-page memorandum they released in June. Binance is VERY politically correct and will never write "Tether big scam" (it doesn't even make grammatical sense).

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