Bitcoin Reaches For The Sky While Tether Struggles In Quicksand

By Sumedha Bose

It’s looking quite green for most of the top cryptocurrencies, except for Tether, which is struggling quite a bit. Despite research claiming that Tether has no real impact on BTC price, the market stats tell a different story. Just today the stablecoin lost its U.S. dollar peg and is trading at an even lower level compared to its previous downfalls. The crypto is currently trading at $0.96.

While Tether weeps in a corner, it’s time for Bitcoin to celebrate. After seeing continued bearish movement in the market for a long time now, the most popular cryptocurrency quickly skyrocketed to  $7000. As of press time, it has fallen back down to $6405.

Bitcoin 7-day price chart

The story of Tether’s tragic downfall meanders down alleys with various twists and turns. Market experts are speculating that Tether’s current fall resulted from a lack of investor trust in the stablecoin. Tether had previously claimed that its tokens are backed by US Dollar, one-to-one. The investors took this claim with a grain of salt but now that the USDT pice has fallen drastically, it is quite apparent that the investors refused to place their faith in the crypto.

Tether in the past has covered up its deficits via funds from its close ally, BitFinex, which is a global crypto exchange. Now the story goes that Bitfinex has recently dropped Noble Bank, which many speculate, was the storage space for Tether’s USDT token supply. Due to this sudden severing of ties between Bitfinex and the Noble Bank, Tether is evidently suffering in the market. Noble Bank has also been closely monitored by Puerto Rican regulators who had in the past, issued a warning to the firm.

The confusion in the market regarding crypto exchange Bitfinex’s insolvency also caused much damage to Tether due to its close alliance with the exchange.

Other cryptos like Ethereum (ETH) and Ripple (XRP) are showing growth as well. Ethereum rose a solid six percent while Ethereum rose more than seven percent. The remaining top ten coins have much to rejoice about as they keep seeing green. As of press time, Stellar (XLM) is up by 5.4 percent trading at $0.22, EOS (EOS) is up around five percent and trading at$5.48 and Litecoin (LTC) is up three percent at about $54.87.

 

Sumedha Bose

Sumedha uses words as her crutch to get by in life. She takes a keen interest in debating, dancing and destroying the patriarchy in her free time. She can be contacted at [email protected].

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