The stablecoin Tether (USDT) is in the latest altcoin news, this time for falling to its 18-month low on Monday despite the general rise which saw all of the top 20 coins rising, led by Bitcoin and its new surge.
The Tether – US dollar (USDT/USD) exchange rate fell to $0.925 and later rebounded to $0.955 which is the current position of the stablecoin. All in all, the stablecoin recorded a 3% drop in 24 hours.
According to some analysts, the slide in the USDT price pushed up the premium carried by Bitcoin (BTC) on the Bitfinex exchange above $600. Right now, Bitcoin is trading at an average of $6,617 across most of the global exchanges, and the Bitcoin Price Index (BPI) has clocked a 5.5 week high of $6,690 a few hours ago.
However, Bitcoin’s price on Bitfinex is higher – approximately $7,055 which means that prices are trading at a premium of $438 to the BPI. The leading cryptocurrency rose to as high as $7,788 on Bitfinex which operates Tether LLC, the firm that issues and developed the USDT token.
Some reports say that traders are losing faith in the token amid the lack of transparency over the true USD holdings by Tether – and the rumored issues directed at the partner firm Bitfinex.
What’s most interesting is the fact that the newly introduced stablecoins such as Gemini Dollar (GUSD) and TrueUSD (TUSD) are up 1.85% and 4.96% accordingly. Right now, no one knows the real reason for Tether’s drop.
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