At the same time, on Monday morning, the price of Bitcoin showed rapid growth, approaching at some point on the Bitfinex exchange close to $ 7800, the Tether USDT price fell by 6% against the US dollar, to which it is theoretically pegged at a ratio of 1: 1.
At some moment, the USDT price dropped to $ 0.92, and it happened almost at the same time as the Kucoin exchange reported that deposits were being suspended and the USDT was withdrawn due to system maintenance. At the time of publication, operations with USDT at Kucoin have been resumed, and the price of the coin is gradually increasing, rising to $ 0.977.
USDT Deposits and Withdrawals Temporarily Closed
— KuCoin Updates (@KuCoinUpdates) October 15, 2018
However, it was Bitcoin’s anomalous growth that focused most of its attention, while it was observed mainly on the exchanges where the USDT is traded. At a certain point, the divergence rate on these exchanges and sites that do not use USDT, was more than $ 1000.
A well-known critic of the Hong Kong Bitfinex’ed exchange, also suggests that the rise in the price of Bitcoin on the stock exchanges without USDT trading is due to bots programmed to follow what is happening on Bitfinex. In his opinion, all these bots will be closed sooner or later.
Despite the fact that Bitfinex’ed’s position is not shared by all members of the community, today’s events have led many to ask a number of questions about what is actually happening on this popular cryptoexchange.
Thus, cryptocurrency analyst Alex Kruger noticed that the discrepancy in prices on the exchanges affected not only Bitcoin, but also Ethereum, the second most capitalized cryptocurrency. At one point this morning, ETH traded on Bitfinex at 10% more than at Coinbase.
Some wild move on crypto. 10% spread on $ETH between Bitfinex and Coinbase.
— Alex Krüger ?? (@Crypto_Macro) October 15, 2018
According to Kruger, the reason should be sought in the massive sales of USDT, caused by traders’ fears that the coin may not have the necessary security in Fiat. Accordingly, wanting to protect themselves from a possible asset depreciation, many of them decided to go into other cryptocurrencies, and this provoked such an explosive growth.
“It will be a great irony if the collapse of Tether will help Bitcoin to exit the bear market,” – the analyst added.
Meanwhile, another well-known analyst, Joseph Young, paints a very unfavorable picture for Bitfinex:
“It’s truly mindboggling to see what Bitfinex has done with Tether and its exchange.
Bitfinex could have been one of the most valuable billion dollar companies in crypto. Yet, it threw out the opportunity out the window and shot itself on the foot.” – he wrote.