Bitcoin surges to over $7,500 USD while Tether loses USD peg
This Monday, 15th October, the crypto community faced some pretty surprising news, as today Bitcoin’s price on Bitfinex, the major crypto exchange, jumped by nearly 10 percent, therefore reaching the high of $7,788 USD.
The real reason for that is that investors suddenly started to flee Tether (USDT). Noteworthy, this stablecoin is being overseen by Tether LLC, a firm which reportedly operates Bitfinex. By these means, now the platform trades the world’s leading cryptocurrency at a groundlessly high price, while the real value is about $6,700 USD per coin. Basically, all exchanges, including OKEx and Huobi, that list USDT, trade it with an efficient premium.
This sudden increase was initiated by the biggest sell-off of Tether to date and caused the stablecoin to drop 6 percent below its peg at $1 USD. It is evident that this dump has definite motives that include purchasing other cryptos such as Bitcoin and Ethereum after selling large amounts of Tether and investing in stablecoins like Gemini Dollar, PAX or TUSD. Also, many analysts conclude that the drop of Tether is merely a coincidence, since the algorithms in Asia started to put massive amounts of cash into major cryptocurrencies.
At this point, the volume of the first cryptocurrency has reached $4,8 billion USD, rising from $3 billion USD, whereas Tether which is supposed to be tied to the U.S. dollar lost a significant part of its capitalization. Other major cryptocurrencies, including Ethereum or Ripple, also see an increase in value, Moreover, fiat-to-crypto exchanges are also facing a surge in volume.
Is this a long-awaited recovery of the cryptomarket? If Bitcoin manages to overcome the $6,800 USD resistance level in the short-term, it might cause the whole market to start a rally to the upside. Let’s cross our fingers - we’ll keep you up-to-date.