Bitcoin Price Increases While Tether’s Drops

Dawid Paluch
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The world’s largest cryptocurrency, Bitcoin, has jumped by almost 11% earlier today. Due to speculations about Tether’s delisted by Binance, the owners hit the panic button and started to sell the USDT. There has been no official statement from any side so far.

It all happened between 7 a.m. (UTC + 02:00) and 9 a.m. At 7:04 the price of BTC was at $6 304,82 according to coinmarketcap.com. Only two hours later price jumped by $660,24 reaching $6 965,06. Then, BTC dropped to $6 600. The market cap increased by over $11 million.

 bitcoin_charts

Can you back it up?

Tether (USDT) is a cryptocurrency with token issued by Tether Limited. USDT is (was?) called a stable coin. The company claimed that each token issued is backed up by one US dollar. Thus it should have constant worth $1,00. Right now, it’s much less, though.

For a few weeks, there have been speculations that investors have been losing faith in the token and its price dropped to $0,97. Today, it has reached a new low. At 8.49 a.m. USDT was worth only $0,925. According to rumors, Binance – the cryptocurrency exchange, is going to delist Tether from its platform.Recently, the exchange has done that with few other cryptocurrencies. Many owners panicked and started to sell the token. As there aren’t many USD/USDT pairs on exchanges, investors bought BTC. Therefore, the price of Bitcoin went that high in only few hours.

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