- USDT recently plunged amid a widespread selloff as holders disposed at least 800 million tokens.
- “Tether has redeemed a significant amount of USDT from the circulating supply of tokens,” USDT team.
The high volatility in the market warranted the creation of cryptocurrencies that maintained a relatively stable value. The coins that emerged were pegged to the US dollar, some on gold and other exchange traded commodities while others have been backed by other digital assets.
The long-standing stable coin pegged to the USD, Tether (USDT) has in the past couple of weeks experienced the worst selloff in history. The token saw its value plummet to the extent of clocking $0.93. This situation has worried crypto currency enthusiasts and investors who have been reminded that stablecoins are not that stable.
However, the developers of USDT are working hard to remedy the situation before it gets out of hand. The official blockchain data brought to light a transaction with a value of 500 million USDT. The address belongs to the treasury to an issuing address according to the company’s website. On receiving the tokens, the issuing address was made to revoke the coins from circulation. Moreover, the tokens were destroyed completely.
Tether’s market cap has been dwindling since October started following the widespread selloff by the holders of the tokens. It has been reported that 800 million USDT has been disposed in less than a month. The destruction of the 500 million USDT brings down the treasury holding from 1 billion. At press time, the treasure is holding about 467 billion USDT. A statement published by Tether confirms the burn:
“Over the course of the past week, Tether has redeemed a significant amount of USDT from the circulating supply of tokens. In line with this, Tether will destroy 500m USDT from the Tether treasury wallet and will leave the remaining USDT (approx 466m) in the wallet as a preparatory measures for future USDT issuances.”
There is a lot controversy regarding the effects of USDT on Bitcoin. The fall in October saw USDT fall to roughly $0.93. There has been a rebound to $0.988, however, this value is still below the value of the USD.
Bitcoin price market overview
The falling price of Tether was met by a rise in the value of Bitcoin (BTC) as well as Ethereum (USDT). Tether continues to surprise investors with the current swings contrary to the expected stability (at $1). Although, the value of USDT is rising again, Bitcoin remains stable amid the consolidation in the market. Bitcoin, is trading at $6,392 following a slight retreat from the broken support at $6,400. The upside has also been limited at $6,500 while the short-term support is at $6,380. More support areas are present at $6,200, $6,100 and eventually $6,000.
BTC/USD 60’ chart
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogecoin Price Forecast: Bulls deploy $355M in DOGE longs amid Gensler exit confirmation
Dogecoin price crossed $0.40 on Friday, after a weeklong consolidation that saw DOGE tumble 13% from last week’s peak. Derivative market reports link the DOGE rally to Gary Gensler’s imminent exit.
Crypto Today: XRP gains 10%, Cardano, XRP, and DOGE price rallies, delay Bitcoin’s $100K breakout
The global cryptocurrency sector pulled $230 million capital inflows on Friday, as markets reacted positively to news of SEC Chair Gary Gensler’s imminent exit.
Cardano Price Forecast: ADA could rally by another 30% as on-chain data signals bullish sentiment
Cardano (ADA) surged 24% to $0.98 on Friday following rising weekly active addresses, increased open interest and spot buying pressure.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.