Is Tether A Factor In Bitcoin’s Price Surge?
In the past few weeks, bitcoin has nearly doubled in price, jumping from $7,000 to more than $13,000. At the time of writing, the exuberance has tapered off somewhat, with the cryptocurrency trading around $11,700. At the beginning of the year, bitcoin traded for just under $4,000. Overall, Coinmarketcap estimates the global crypto market has shrunk around 10% in the past 24 hours. Bitcoin is down roughly 20% week-over-week, around 30% from its all-time high of nearly $65,000 early last week. The tumble has been less severe for Ethereum, which hit an all-time high just yesterday but has since dropped 13% as the broader market has crawled back. Although crypto speculation surely increased after the social media giant’s announcement, bitcoin’s recent rise might also have something to do with another digital token, Tether, a US dollar-pegged unit commonly used to trade bitcoin on exchanges that lack banking partners.
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Tether, Not Libra, May Be The Cryptocurrency Behind Bitcoins Surge
In other words, the digital tokens, which are meant to be worth $1 apiece, would have only $0.74 of redeemable value if all were converted at once. Tether was linked to bitcoin price manipulation last June in a paper by researchers at the University of Texas. In April, The New York attorney general’s office announced that it was investigating iFinex for fraud. Read more about Buy Litecoin here. HowTo Guides How to buy / sell / send Crypto guides.Crypto Questions Answering most of your crypto questions.
Contrary to popular belief, Facebook’s planned cryptocurrency, Libra, probably isn’t the only thing behind bitcoin’s recent resurgence. Dogecoin erased the breakneck gains of the week and then some, nearly halving its price after a meteoric climb last weekend. XRP is down 35% week-over-week, Stellar is down 30% and Polkadot is down 25% since last week. Coinbase, which went public last week via direct listing, shaved about 10% off its share price this week, but was largely unaffected Friday in intraday trading. Investment Analysis Historical performance and stats for all cryptocurrencies.GitHub Analysis Development activity on Github for open source cryptocurrencies. Fundamental Analysis Key factors and information to perform crypto fundamental analysis. Also in April, Tether’s attorney revealed that USDT tokens are only backed 74% by reserves.