Tether (USDT) Decouples From U.S. Dollar, Driving Bitcoin Higher

Voyager
Voyager

The price of the world’s leading stablecoin, Tether (USDT), which is designed to be pegged 1:1 to a cash reserve of U.S. dollars, has dropped to below $0.95.

This unprecedented market action has likely shaken investors that currently rely on the stablecoin as a relative digital asset safe haven, driving the conversion back to Bitcoin (BTC).

https://twitter.com/ummjackson/status/1051720700053065736

It is currently unclear why the stablecoin has experienced the 5% drop, but such action will likely spook investors given the long track record of questionable activity surrounding Tether.

[Read: Why Crypto Traders Are So Worried About Tether]

The drop is significant since USDT continues to dominate the market, accounting for roughly 98% of the total daily trading volume of all stablecoins, as well as 60% of Bitcoin’s daily trading volume.

As a result of Tether’s fall, the¬†AltDex 100 Index¬†(ALT100), a benchmark index for large-cap cryptocurrencies and tokens that notably does not include stablecoins, is currently up 3.41%.

USDT/USD via CoinMarketCap
More:¬†Crypto Markets Roiled as Traders Question Tether’s Dollar Peg

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

 
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