Technical analyst and crypto investor Aurelius revealed that the price of Tether (USDT), the most commonly used crypto money in the crypto money market, fell in the last 24 hours. Tether’s price drop by about 1% has brought a move to USDT / BTC transactions in particular.
The value of USDT, which is a stable cryptocurrency supported by the US dollar, should remain at $ 1. According to BitMEX Research, the company behind USDT Tether LLC is said to be $ 2.8 billion in a Puerto Rico-based bank account.
Therefore, when the price of Tether falls, it may likely lead to instability in the market due to sales in large crypto exchanges.
Can 1% Difference Between Bitfinex and Coinbase Affect Bitcoin?
On 3 October, the crypto money investor and well-known analyst Alex Kruger said the difference between the USDT-backed stock market Bitfinex and the Coinbase, the stock exchange (US dollar), rose to 1%.
With Tether’s price falling to $ 0.99, buying cryptocurrency with Tether has become nearly 1% more expensive on crypto-currency trading platforms. Kruger said:
Currently, there is a 1% difference between Bitfinex and Coinbase. Quite stunning. Yesterday was around 0.75%. It’s usually around zero.
The only logical explanation for the decline in the Tether price over the past 12 hours is the sale of USDT by large USDT holders. As large USDT owners began to sell stable crypto money, the price fell and led to a move for USDT-cryptocurrency pairs.
Considering that the purchase of crypto coins such as Bitcoin and Ethereum with USDT is more expensive than the US dollar, it can be claimed that investors sell USDT to invest in crypto coins.
Bitcoin recovered above the level of $ 6,500 after the lowest level in the week fell to $ 6,440. At the same time, the Tether value declined by 1 percent. The value of the crypto market has also increased by $ 2 billion from $ 212 billion to $ 214 billion in the last 12 hours.
How Do Tether USDT Decrease Bitcoin Prices?
On October 3, it is entirely possible for a group of investors or large USDT holders to sell a large amount of Tether savings to invest in cryptocurrencies. This is expected to cause the market to recover in the short term.
Tether’s abandonment of Noble Bank, which has been providing banking support to Tether for many years, may have been influential in the short-term price trend of this stable crypto money.
Bloomer reported based on a source:
The bank has lost most of its customers, including Bitfinex and Tether, and is no longer a profitable bank. The company may be sold at a price of between $ 5 million and $ 10 million, primarily due to the value of its Puerto Rican license operating as an international financial asset.
Nice to have alternatives
On 27 September, after listing the stable crypto-currency PAX run by Paxos and approved by the New York Department of Financial Services, CEO of Finance, the world’s largest crypto money exchange, Changpeng Zhao said:
For people who complain about a lack of control in the USDT, there is another alternative. As always, make sure you understand what is before buying.
While the reasons for the decline in Tether’s prices are still uncertain, it is likely to have an impact on the short-term trend of the market. Therefore, for the long-term growth of the market, it is confident that there are alternatives to dominant cryptocurrencies.