Tether (USDT) Lost Parity With the US Dollar - Would Bitcoin (BTC) Skyrocket?

  • Tether (USDT) Lost Parity With the US Dollar - Would Bitcoin (BTC) Skyrocket?

Tether (USDT) Lost Parity With the US Dollar - Would Bitcoin (BTC) Skyrocket?

After closing October 14 at $6,290.93, bitcoin was spiking sharply Monday morning.

Bitcoin Private (BTCP) is trading at $2.59 against the dollar, a 3.81 percent change in the last 24 hours.

Tether is one of the biggest stablecoins in the market, and realistically it will take some time before other stablecoins can catch up. And rumors that the crypto exchange is facing "insolvency issues" (Bitfinex refuted this), and a longstanding misgiving about Tether's actual holdings in U.S dollars, is said to be at the heart of the price decline.

BAT has not been integrated into the trading platform of Coinbase as of yet, but the world's largest digital asset brokerage disclosed its intent to list Cardano (ADA), BAT, and Stellar (XLM) as soon as it receives an approval from local regulators including the US Securities and Exchange Commission (SEC). Bitfinex have tweeted out a response to the recent ratings to say that all crypto withdrawals and deposits are functioning normally, with the only disruption with fiat deposits for "certain groups".

Tether is closely tied to BitFinex, a global crypto exchange which lately has dropped Noble Bank as its banking partner. This has led to an inflated price averaged on CoinMarketCap of $6,650. Tether and Bitfinex share a CEO, Jean-Louis van der Velde, as well as some of the same management team. Both events acted as catalysts for Tether's price movement.

What are your thoughts on Bitfinex's new banking announcement? He also implied in a rather ironic but not-so-obvious way that there is nothing organic about the sudden pump of Bitcoin and all of this looks like market manipulation. Tether has gone down and analysts predict it will be back up again.

Tether has been having a hard time over the past few weeks.

No one will deny Tether's USDT stablecoin is a bit controversial.

In the short term, the instability and selloff of USDT may seem beneficial to the digital currency market. But on the mid to long term, the United States authorities will have enough of a reason to investigate and shut down Bitfinex for manipulating the market. Most certainly. On a faster time frame, we appear to be testing that initial breakout, but nonetheless, we appear to be closing at the downtrend line or above the downtrend line on the daily - with massive volume.

On November 5th 2018, the US Security and Exchange Commission is expected to present the results of nine ETF applications for Bitcoin.

Last week, Bitfinex sent almost $300 million worth USDT tokens to the Tether treasury address.

Last Thursday, when Bitfinex revealed that fiat deposits are paused, some investors became suspicious due to the lack of details from Bitfinex regarding the mentioned "complications" that made the exchange halt fiat deposits.