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.

Crypto Exchange Update: Binance, Bitfinex, Bitstamp, Huobi Global, and Poloniex

Siamak Masnavi

The "Crypto Exchange Update" covers the latest news from Binance, Bitfinex, Bitstamp, Huobi Global, and Poloniex for the week 14 October 2019 to 20 October 2019.

Binance

  • October 14: Binance announced that it would be launching the phase 9 of Binance Lending Products at 12:00 UTC on 16 October 2019. This is when 14-day fixed term lending products for BNB, BTC, BUSD, ETH, MATIC, and USDT became available.
  • October 15:
    • Binance.US listed Dash (DASH).
    • Binance and swiss firm Amun AG jointly announced the launch of a BNB Exchange-Traded Product (ETP) on the regulated segment of the SIX Swiss Exchange.
    • Binance announced support for the staking of Harmony (ONE) tokens on Binance starting on 16 October 2019.
    • Binance introduced the Binance Academy mobile app (available for both iOS and Android).
  • October 16: Binance announced that the next token to go on sale on its IEO platform Binance Launchpad would be Kava (KAVA).
  • October 17:
    • Binance.US listed Algorand (ALGO) and Zcash (ZEC).
    • Binance announced that it had completed the 9th quarterly BNB coin burn (2,061,888 BNB, worth roughly $36.7 million, was burnt).
  • October 18:
    • Binance Futures increased maximum leverage from 20x to 125x for BTC/USDT contracts. 
    • Binance.US said that from 18 October 18 2019, "USD deposits are eligible for FDIC insurance coverage."

Bitfinex

On October 17, Bitfinex announced the launch of the Bitfinex Affiliate Program. Bitfinex customers who join this program and become affiliates can potentially earn "unlimited commission" by sharing invite links across their social media channels.

Bitstamp

On October 15, Bitstamp, Europe's largest crypto exchange by trading volume, announced that it is integrating Ledger Vault’s technology to "enable advanced custody options." Bitstamp and Ledger's joint press release said that Ledger Vault Ledger Vault "will provide flexible wallet tech infrastructure that will allow Bitstamp to set up a sophisticated and very secure custody system with end-to-end hardware backed transfers and a strong multi-authorization governance model, ensuring there are no single points of failure and allowing better management of assets in storage."

Huobi Global

On October 15, Huobi Global said that it had "completed the repurchase and burn of HT for Q3 2019 (a total of 11.3321 million HT, approximately equivalent to 40.6369 million USDT), of which, 8.3389 million HT was directly repurchased from the secondary market, with 2.9932 million HT derived from HT fee income."

Then, on October 18, Huobi announced that it planned to launch a fiat gateway in Turkey that will allow local investors/traders to buy Tether (USDT) with the local currency (the Turkish Lira) via their bank accounts. Then, they can trade USDT against any of the 250 cryptoassets supported by Huobi Global.

Poloniex

On October 18, Poloniex announced that it was being spun out from its parent, FinTech startup Circle, into a new company, Polo Digital Assets, Ltd., "with the backing of a major investment group" so that it would be free "to focus on the needs of global crypto traders with new features, assets and services."

Unfortunately, there was some bad news for Poloniex's U.S. customers since Polo Digital Assets won't be supporting them, which means that (i) U.S. persons will not be allowed to create accounts on Poloniex; and (ii) from 1 November 2019, U.S. customers won't be able to do any more trading on Poloniex, though they can make withdrawals via Circle until 5 December 2019.

 

Featured Image Credit: Photo via Pixabay.com