USDT sell-off sees the stablecoin untethered, will this flood into Bitcoin?

23 Jun, 2019 | Updated: 23 Jun, 2019
by Will Heasman
Analysis
USDT sell-off sees the stablecoin untethered, will this flood into Bitcoin?

As Bitcoin continues its rally above $10k Tether (USDT) appears to have been slightly shaken off its peg, fluctuating above an below its usual $1 value going and as low as $0.990; is this a sign that people are beginning to sell off Tether and flood into Bitcoin and other cryptocurrencies? Or is there something else at play?

Over the course of the last 24 hours, USDT was seen as low as $0.990 across multiple exchanges, as investors seemingly began a mass exodus of the stablecoin. 

USDT/USD Chart provided by Tradingview

According to Viewbase - a blockchain analytics firm – many investors started FOMOing as soon as Bitcoin (BTC) hit $10k, a figure which provides a major psychological level for many traders. Viewbase relayed that this FOMO was depicted through an inflow of stablecoins into exchanges, including USDT, giving credence to a sell-off of Tether which may have led to its instability:

Some pointed out Tethers lack of stability on Twitter, with one suggesting that it was due to investors swapping out USDT for Bitcoin.

On top of this, as reported 100,000,000 USDT was recently printed by the Tether treasury, with some speculating that a pump was due following the newly minted USDT:

Typically, the more people buy Tether, the more gets issued. This means that speculation of a pump (with investors looking to shift into BTC or alts) has some weight behind it.

What do you think is bitcoin likely to pump more after this tether sell off? Let us know your thought in the comments below!

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