Abnormal growth of bitcoin on Bitfinex raised fears about the possible collapse of the Tether


At the same time as the Monday morning bitcoin price showed a rapid growth, coming close to some point on the Bitfinex team close to $7800, the rate of Tether USDT fell by 6% against the US dollar, to which it is theoretically tied in 1:1 ratio.

At some point, the USDT price dropped to $0.92, and it happened almost at the same time as the exchange Kucoin announced the suspension of deposits and withdrawal USDT due to system maintenance. At the time of publishing operations at USDT Kucoin resumed, and the price of the token is gradually increasing, rising to $0.977.

USDT Deposits and Withdrawals Temporarily Closed

See the official announcement here://t.co/wVfyJx1F8U pic.twitter.com/TJ3a2MqY6a

— KuCoin Updates (@KuCoinUpdates) 15 October 2018

However, the main attention was attracted to the abnormal growth of bitcoin, in this case it primarily on the stock exchanges where trading USDT. At some point, the discrepancy rate on these exchanges and platforms that do not use USDT made over $1000.

Bitfinex Premium of $1000+ pic.twitter.com/bf9vWCSRCg

— Bitfinex’ed 🐧 (@Bitfinexed) 15 October 2018

A well-known critic of the Hong Kong stock exchange Bitfinex’ed also suggests that the growth of bitcoin prices on exchanges without trading USDT due to bots, programmed to follow what is going on at Bitfinex. In his opinion, all these bots sooner or later will be closed.

The only reason Bitcoin is rising on USD exchanges is because of bots programmed to follow Bitfinex.

Eventually these bots will be shut off.

— Bitfinex’ed 🐧 (@Bitfinexed) 15 October 2018

Despite the fact that the position Bitfinex’ed is not shared by all members of the community, today’s events have led many to ask a number of questions about what is really happening on this popular exchange.

So, cryptocurrency analyst Alex Kruger noticed that the price variance on the stock exchanges affected not only bitcoin, but also the second capitalization cryptocurrency Ethereum. At some point this morning ETH was trading at Bitfinex 10% more expensive than Coinbase.

Some wild move on crypto. 10% spread on $ETH between Bitfinex and Coinbase.

— Alex Krüger 🇦🇷 (@Crypto_Macro) 15 October 2018

According to Krueger, all of this suggests that the cause must be sought in a massive sales USDT caused by the fears of traders that the token may not have the necessary support in the Fiat. Accordingly, wishing to protect themselves against possible depreciation of the asset, many of them decided to go to other cryptocurrencies, and this provoked such an explosive growth.

“It will be a huge irony if the collapse of the Tether will help bitcoin to get out of a bear market,” the analyst added.

In comments to Bloomberg head of business development of the exchange Luno Vijay Ayar also suggested that the situation around the Tether may lead to increased volatility in the market.

“If traders start to get out of the Tether, it creates a potential unsafe situation, as it accounts for 20% of global trade volumes. Practically, this means that we have a lot of volatility,” he said.

Meanwhile, another well-known analyst Joseph young draws a very unfavourable picture for Bitfinex:

It’s truly mind boggling to see what Bitfinex has done with Tether and its exchange.

Bitfinex could have been one of the most valuable companies in the billion dollar crypto. Yet, it threw out the opportunity out the window and shot itself on the foot.

Bye @bitfinex RIP 🙏

— Joseph Young (@iamjosephyoung) 15 October 2018

“The mind boggles, what Bitfinex did to Tether with the stock exchange. Bitfinex could be the most valuable billion-dollar company in the cryptocurrency industry, but she threw away this opportunity in the open window and shot himself in the leg. Goodbye and RIP, Bitfinex”, — he wrote.

Known for his ironic and sharp statements investor Richard HART wrote that when exchanges die, bitcoin price usually goes up.

Just remember, when exchanges are dying, #Bitcoin price usually goes up.

— Richard Heart (@RichardHeartWin) 15 October 2018

However, to bury the exchange is ready not all. So, co-founder and CEO of research firm CoinFi Timothy Tam told Bloomberg that speculation around Bitfinex, while withdrawal it is still carried out in the normal mode, more like “paranoia”.

“I am sure that soon enough everything will be resolved”, — he said.

Representatives Bitfinex to the request for comments regarding the situation are not answered, however, some time ago in her Twitter account there was a message about that in the next few days, the exchange plans to launch a new system that will allow you to resume accepting Fiat deposits. Recall, this feature was suspended last week.

Fiat deposit update — October 15th, 2018. //t.co/F8o2ltVCN4 pic.twitter.com/ukE9JsRB0j

— Bitfinex (@bitfinex) 15 October 2018

The exchange also certifies that the withdrawal is both in Fiat and cryptocurrency is in normal mode.

ForkLog continues to monitor developments. Subscribe to our news in Twitter!

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