Bitcoin Surges Over 10% Amid Massive Tether (USDT) Selloff

Bitcoin (BTC) has surged over 10% in the past 24 hours, briefly surpassing the $7,000 mark according to data from CryptoCompare. The BTC price is also fluctuating rapidly as it’s trading at $6,698 at press time.

minute_CryptoCompare_Index_BTC_USD_289_51539591171973.pngSource: CryptoCompare

Market analysts believe the massive Tether (USDT) selloff has sparked a "run on the bank" - and this might be the reason why the BTC price has surged so rapidly as the market’s nervousness about Tether has sparked a panic, with traders buying BTC, altcoins and other stablecoin alternatives for USDT.

As the bitcoin price surged, as usual - altcoins maintained their close price correlation with BTC, likely due to arbritrage bots - with Ethereum (ETH) up nearly 10% in the last 24 hours and currently trading at $219.00. The XRP token has also surged by approximately 10% and is trading at $0.4630.

minute_CryptoCompare_Index_USDT_USD_289_51539592236613.pngSource: CryptoCompare

Although it is unclear at press time what exactly caused the spike in prices, there are “scam rumors” spreading in the markets and many are now thinking, or fearing, that USDT pairs might get delisted from large cryptocurrency exchanges such as Binance.  

Many cryptocurrency traders might now want to get out of USDT into BTC and other crypto assets - which could be why almost all USDT pairs have been pumping across all the exchanges. It also seems like this price pump might be short-lived.

Notably, digital asset trading platform KuCoin had suspended Tether withdrawals and deposits on October 14th, but reopened them a few hours later. Redditors are now speculating whether this development was a cause of some the recent market action.

Regulated Stablecoin Alternatives

As most crypto industry participants are now aware, the market has been flooded with a raft of stablecoins. This many believe could begin to put an end to Tether’s dominance of the markets as it has so far been the most popular stablecoin among traders.

With the introduction of the Paxos Standard (PAX) - up 10% this morning - and the Gemini dollar (GUSD), crypto traders and investors now have more options as far as stablecoins are concerned. Both PAX and GUSD  are also approved and regulated by the New York State Department of Financial Services (NYDFS) - whereas Tether is not.

The emergence and use of more stablecoins, apart from USDT, may also potentially be causing the wild crypto price fluctuations.

John McAfee Calls People Who Fell for His $1 Million Price 'Prediction' for Bitcoin 'Idiots'

Francisco Memoria

Eccentric cybersecurity entrepreneur John McAfee has commented his $1 million bitcoin price prediction made in 2017 on social media, mocking the “idiots” that did not see the “absurd humor” in it.

In a series of tweets, McAfee reminded his followers he was the person who prediction Bitcoin, the “most crippled crypto-tech” would reach $1 million by the end of this year, and added he posted his prediction on the same day he predicted a whale-loving sport would replace surfing as the number one water sport.

While McAfee does mention the supposed sport often on his social media accounts – and has been doing so at least since 2016, he doesn’t appear to have mentioned it the same day he made the price prediction. Nevertheless, he responded to a user asking if he did not see “the absurd humor” in the $1 million bitcoin pride prediction.

He added:

Put a different way: If Bitcoin ever hit $1 mil, it's market cap would be greater than the GDP of the entire North American Continent. What idiot could believe such nonsense?

McAfee had already U-turned on his price prediction earlier this year, when he claimed it was a “ruse to onboard new users” that worked. At the time, he said Bitcoin was “ancient technology” and compared it to Ford’s Model T, questioning whether it could have been the future of cars.

In April, McAfee responded to a user on Twitter by claiming bitcoin is “worthless,” despite making his price prediction back in 2017.  McAfee has since then been criticized for making various price predictions he got wrong – including for altcoins – while some have defended the value of BTC on his feed.

According to The Verge, in 2018 McAfee revealed he charged $105,000 for a promotional cryptocurrency tweet. His promotional crypto tweets started after he unexpectedly helped the price of Verge (XVG) surge with a tweet.

Featured image via Unsplash.