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Edited by Sona59 at 25-12-2023 12:31 PM
Cryptocurrency trader and renowned analyst Alex Kruger stated on October 3rd that the price difference between the Tether-backed exchange Bitfinex and the fiat-crypto exchange Coinbase has widened to 1%.
As Tether's intraday price dropped to as low as $0.99, using Tether to purchase cryptocurrencies on spot trading platforms became more expensive, with an increase of approximately 1%.
Kruger stated, "The current price difference between Bitfinex and Coinbase is 1%. Quite notable. Yesterday the difference was about 0.75%, but the difference is typically zero."
The only reasonable explanation for the significant drop in the price of Tether in the past 12 hours is large holders selling USDT. As major holders of USDT began selling this stablecoin, causing the price to drop, it resulted in a premium for USDT against other cryptocurrencies.
Considering that using USDT to purchase Bitcoin, Ethereum, and other cryptocurrencies would be more expensive than using US dollars, it can be inferred that these traders sold off USDT to invest in cryptocurrencies.
Bitcoin, after touching a one-week low of $6,440, has rebounded, breaking through the $6,500 mark. Around the same time, Tether's price also dropped by 1%.
It is highly likely that on October 3rd, a group of traders or major USDT holders sold a significant amount of USDT to invest in various cryptocurrencies, anticipating a short-term market recovery.
The departure of Tether from Noble Bank, which had supported it as a banking backer for many years, could also influence the short-term price trend of this stablecoin.
An insider stated, "The bank lost many clients, including Bitfinex and Tether, and is no longer profitable." According to Bloomberg, the company might be sold for a price ranging from $5 million to $10 million, primarily based on having licenses in Puerto Rico, allowing it to operate as an international financial institution. |
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Post time 8-12-2023 12:25:40