Bitcoin crossed $7k and climbed to $7,700 on some exchanges like Bitfinex. The surge in Bitcoin price has been attributed to USDT which went down below $0.95 while Kucoin temporarily closed the USDT deposits and withdrawals.
The FUD that drove Bitcoin prices
Today, Bitcoin jumped the $7,000 mark with 24-hours gains of over 10 percent. The majority of the crypto market enjoyed significant gains all of a sudden. So, what prompted the prices to surge?
Well, a popular FUD surrounding the market has been that Binance will be delisting all the USDT pairs from its platform. And this has been the reason why all the USDT pairs were pumped because everyone wanted to get out of them.
However, as put by Binance CEO, Changpeng Zhao on twitter, in clear terms,
too much FUD.
— CZ Binance (@cz_binance) October 15, 2018
As commented by a crypto enthusiast on Twitter, “If this FUD triggers a $BTC bull run, it is a nice FUD to have.”
And another one, “I hope this fud goes on for a week within an hour BTC surged above 1k $ how much week fud will do?”
Well, this certainly points out the fact that stable coin is not that much stable as USDT dropped below $0.95.
Meanwhile, KuCoin temporarily closed the USDT deposits and withdrawals stating,
“Due to USDT wallet system maintenance, we have decided to temporarily close deposits and withdrawals for USDT.”
Is USDT the real culprit?
Also, Bitfinex provided an update on its fiat deposit, explaining,
“On Thursday, October 11th, 2018, Bitfinex decided to temporarily pause fiat deposits (USD, GBP, EUR, JPY) for certain customer accounts in the face of processing complications.”
The official announcement reads that all crypto and fiat withdrawals are “processing as usual without the slightest interference,” while fiat deposits are temporarily paused for certain user groups.
Bitfinex concluded with the promise,
“We are working to implement a new and increasingly robust fiat deposit system to be available in the next 24 hours, by Tuesday, October 16, 2018, to allow for the efficient processing of fiat deposits.”
However, Marius Kramer Who touts himself as No. 1 writer and influencer on Bitcoin, Cryptocurrencies, Virtual-Currencies & and all things blockchain on Quora worldwide wrote,
“It was just a whale buying up lots of Bitcoin with lots of USDT that he held. In fact, he bought up $500M worth of Bitcoin, which made the Bitcoin market cap go up by $25B… So, this doesn’t have to do anything with Tether, just a whale buying lots of BTC. When that happens, USDT pairs always pump, because of math.”
Kramer further added:
“However, I don’t think it was an institutional investor, but someone who had lots of USDT. So, he bought $500M worth of Bitcoin with USDT. Since this put a lot of USDT on the market, the USDT price tanked.”
As for who are involved exactly,
“If you look at Top 100 Richest Bitcoin Addresses and Bitcoin distribution, there are currently only 3 addresses that hold that much wealth and they all belong to the exchanges Bitfinex, Bittrex, Binance.”
A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com