Tether becomes 4th largest crypto, demonstrating intensity of market blood bath

Publicado en by Cryptoslate | Publicado en

On Sept. 25, the crypto market experienced one of its steepest falls in recent years as the bitcoin price abruptly dropped by more than $1,500 in merely hours, sending many cryptocurrency investors to Tether.

Tether, a stablecoin said to be run by iFinex, the parent company of a major cryptocurrency exchange in Bitfinex, has often been used as a hedge option for cryptocurrency investors, especially amidst sharp pullbacks and corrections.

As investors flocked to Tether to safeguard their holdings in crypto assets, the daily volume of the stablecoin spiked to levels unseen before.

According to data published by CoinMarketCap, the daily volume of Tether hit $34 billion, surpassing the daily volume of bitcoin and Ethereum.

Technical analysts predict that if the bitcoin price cannot recover from its current range at $8,300 to $8,600 in the near term, a drop to the $6,000 to $7,000 becomes a possibility.

DonAlt, a cryptocurrency trader, said that a key technical indicator suggests bitcoin hovering at $8,000 is similar to when the dominant cryptocurrency was at $5,000 following a drop from $6,000.

Continuous sell-off of bitcoin and a bigger pullback in the crypto market will inevitably lead the volume of Tether to surge, forcing more investors to hedge to last an extended correction.

This week, Tether secured a motion from a court in New York in an ongoing case in which the New York Attorney General's office alleges iFinex of mismanagement, that would prevent the company from having to hand in additional documents to the court.

Although Tether may be requested to send more paperwork in the future, for now, the company has found itself a small win in a challenging case.

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