The Bitcoin price recently saw a slight bump and rose under 2% in an attempt to extend the market’s weekend recovery this week.
However, even the news that Tether issued $50 million worth of new tokens did not affect the BTC price, which is now again in a slight minus, hovering above the $6,000 mark. In fact, Bitcoin fell from $6,458 to $6,058 and its market cap is also in the red.
Even though there are many factors that impact Bitcoin’s price movements, the weekend rally also correlated with a new issuance of USDT, which is the dollar-pegged “stablecoin” token that was created by the controversial cryptocurrency startup Tether.
As the data from Omni Explorer showed, the Tether Treasury issued 50 million USDT on Saturday, representing a new influx of $50 million into the crypto market. The tokens were transferred to Bitfinex, representing the third time this month that Tether sent $50 million in USDT to that exchange.
With a market cap of over $2.5 billion, Tether is holding $500 million in reserve – funds which have been authorized for issuance but also ones that are not yet distributed.
However, the most interesting correlation is the one between USDT issuance and the Bitcoin price movements. While critics point that the token (USDT) is being used for manipulation of the crypto markets through a fractional reserve, Tether recently hired Free, Sporkin & Sullivan LLP (FSS) which is a legal firm founded by a former FBI director – all in order to review its finances.
The cryptocurrency exchange Kraken also denied that there is any evidence that the token is used to manipulate the Bitcoin price.
CFTC With A Fine Of $1.1 Million To Crypto Fraudster
"Today's Order stands as yet another in the string of cases showing the CFTC's commitment to actively police the virtual currency markets and protect the public interest," is what is written in the CFTC enforcement document.
Australian Exchange Co-Founder: ‘Stablecoins Are A Game Changer’
“In London, I see a lot of finance people getting into it. People with 10, 20 years of forex experience are trying their hand at it. It’s drawing a lot of people from traditional financial circles, just because it’s interesting, it’s intriguing, there’s a lot of upside to it.”Meanwhile, his exchange CoinJar, will consider the possibility of floating a stable currency, even though the market has a number of players in that circle, according to Tan. As he added in the report:
“There are a few Australian stablecoins already – I think there are three or four out there. I think many of them would be happy for us to utilize them. The question is, how do we try to leverage some of these things to provide a better user experience for our users?”Earlier this year, CoinJar introduced the first cryptocurrency index fund, offering wholesale investors with net assets of more than $2.5 million (AUD) to cryptocurrency while shifting the custody responsibility to CoinJar.
CEO Of Binance Thinks That Market Is Still In A Good Position, Crypto Volume x2 Larger Than Stats
“Compared to January [of 2018], we are probably down 90 percent. So we only have one-tenth of the trading volume compared to what we had in January. But, compared to like a year or two years ago, we’re still trading at huge volumes. Business is still okay, we are still profitable, and we are still a very healthy business."Binance is still recording decent volume and maintaining a healthy business - showing an increase in its number of active users and BTC deposits. Zhao continued, stating:
“Right now we are still signing up a steady amount of new users every day so from what we are seeing, it’s very healthy actually. The number of new users and the amount of crypto we hold are increasing very steadily. So if you look our cold wallets, the amount of BTC we hold, we have just seen an increase in people depositing Bitcoin to our exchange.”Meanwhile, the cryptocurrency market cap seems to be getting hold of the over-the-counter (OTC) market where large institutional traders are playing. According to some stats from earlier this year, this market is at least two times larger than the cryptocurrency exchange market. CZ also noted that the OTC market is estimated to be at least as large as the live recorded volumes of exchanges. As such, it is now twice the size of the current volume, having around $23.4 billion (despite the $11.7 billion daily trading volume of crypto) in circulation.
“What I’ve heard is the OTC market is at least as large as the live recorded volumes [on exchanges]. So that is at least 50 percent of volumes that is not being reported on CoinMarketCap. But we’re not heading to that business, so we don’t know the real volumes,” Zhao concluded.
Major Altcoin Rise: Cardano, Stellar And Zcash With Gains Prior To Coinbase Listing
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- CEO Of Binance Thinks That Market Is Still In A Good Position, Crypto Volume x2 Larger Than Stats
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