Within the last 24 hours, the Bitfinex Bitcoin cold wallet has lost over 3,000 BTC and this has raised concerns in the industry. You’ll recall that there was an outflow of Tether from Bitfinex two days ago. Today, there is a large inflow of Tether and an outflow of Bitcoin. The number of Tether on the cold wallet increased from 144 million to 251 million while 3,000 BTC exited the exchange. This isn’t the first time Bitfinex has experienced such USDT fluctuations. However, the rate at which this is happening is alarming. It would seem like investors have decided to send their assets to other exchanges from Bitfinex.
The Scoop On Bitfinex
Within one hour, a significantly high number of transactions started from Bitfinex wallet with Bittrex serving as an intermediary wallet. Some other exchanges like Huobi have also had an influx of Tether. It is still not clear where the Bitcoin is being sent to but there have been rumors about Bitfinex going bankrupt that may have contributed to the fluctuations. After the exchange was ditched by HSBC, it’s possible that it is now having banking issues.
Tether (USDT) Price Today – USDT / USD
Currently, the Bitfinex and Tether treasuries hold over 500 million USDT. While the price of Tether is supposed to be equivalent to the USD at $1, it was surprising when it fell below this level. The premium trading value of Bitcoin on Bitfinex is above $100. Should a USD redemption be attempted, the price of Bitcoin and USDT will drop significantly. This is going to happen soon considering the selling pressure on Kraken.
Bitcoin (BTC) Price Today – BTC / USD
The activity on Bitfinex is rather troubling as a crash will disrupt the cryptocurrency space for a long time. While some people are afraid that the investors have lost interest in the platform, some think it is most likely just a false alarm. It’s important to note that Tether is being traded for some other Stablecoins like TrueUSD (TUSD) and Paxos (PAX). If this continues, the price of Tether will fall even lower against the USD.
Tether And Bitcoin Against The USD
At the time this piece was written, Tether (USDT) was trading at $0.988957. This shows that it is down by 0.46% against the USD and down by 0.43% against Bitcoin. The 24 hour trading volume is $2,362,548,126 and the market capitalization is $2,676,534,034. Most of the trading volume is coming from sellers. The leading cryptocurrency per market capitalization, Bitcoin, is currently trading at $6,276.58. This means it is down by 0.26% against the USD. The next few days of trading will determine if the price action will change.