The crypto market witnessed one of the steepest falls in recent years. The bloodbath has led leading cryptocurrency Bitcoin Cash(BCH) to slip to the 5th place on CoinMarketCap. It has been replaced by stablecoin Tether(USDT).
Crypto Market Takes A Steep Downturn
Bitcoin [BCH] Cash, Bitcoin SV, and EOS fell the most among the top ten cryptocurrencies. BCH has dropped more than 22% to test lows near $220. According to leading chart analyst, Peter Brandt, the plunge could go deeper.
He suggested a break-out from the bearish head and shoulders pattern on a daily scale in BCH/USD. The formation of the pattern has been panned out from about five months.
Tether(USDT) Records Unprecedented Trade Volume
Notably, most top altcoins followed a similar pattern of rising and fall. They have moved together in tandem this year. Hence, a drastic drop in the price of one of the top altcoins could act as a catalyst for others as well. However, it looks like the case of one’s loss is other’s gain.
Tether has time and again been used as a hedge option for cryptocurrency investors, especially amidst sharp pullbacks and corrections. In the midst of the bloodbath, investors flocked in high numbers to Tether to secure their crypto assets, leading to a huge spike in huge volume of the stablecoin.
Are Good Times Coming For Tether (USDT)?
The NYAG’s office had filed a complaint in April of this year and alleged that Bitfinex raided Tether reserves in an attempt to cover losses of approximately $900 million to Crypto Capital, the matter being a payment processor with connections to the exchange QuadrigaCX which was involved in an exit scam.
In a recent development, iFinex, parent company of stablecoin issuer Tether and crypto exchange Bitfinex, now need not comply with a court order to turn over documents, at least for the time being
Earlier, this week Tether(USDT) managed to secure a motion from a court in New York. The case is an ongoing one in which the New York Attorney General’s office alleged iFinex of mismanagement. Subsequently, the company would not need to produce any additional documents in the court.
“We are gratified by the panel’s decision and we look forward to addressing the significant substantive issues before the appellate court,”
a representative of iFinex said,
However, with a daily volume on a considerable rise, the company sees some progress in the New York Case, thus, making it a good quarter for Tether(USDT).
“The injunction that prohibits the movement of money between Tether and Bitfinex is still in place. We look forward to making our case in court as we seek to have Judge Cohen’s decision upheld and continue our investigation,”
the New York Attorney General’s office said.
A Look At Tether (USDT) Price Charts
As per price charts on the 20th of September, Tether(USDT)r marked a heavy movement in prices. The price jumped from $0.9974 to $1.000 by 0.32%. Further, there was a minor rise in price from $0.9985 to $1.001 in the second half of the day.
At press time, Tether(USDT) is trading at $1 with an increase of 0.2% in 24 hours and has recorded a trading volume of $35. 58 Billion in the past 24 hours.
Tether’s Burning of Tokens
In a recent update Tether announced plans to move 400 million USDT tokens. They will be a part of its Omni authorized pool. However, it will not issue funds to the issuance address to burn or revoke them. In July, it was reported that Tether(USDT) accidentally minted and burned 5 million USDT tokens.
How long will the crypto market to go green? Is it just a case of prolonged winters in the crypto space? Let us know, what you think?
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.