Bitcoin Flash Rally As Tether Loses It’s Peg

CrowdConscious

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The Cryptoverse

3 min readOct 16, 2018

Chris Coney’s ‘The Cryptoverse’ crypto podcast curation by CrowdConscious.

On Today’s Episode of The Cryptoverse…

Chris covers the flash rally in the crypto markets, sparked by a Tether scare which pushed Bitcoin’s price way out of whack on Bitfinex.

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Enjoy!

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Episode Transcript, Notes & Links

Let’s start with the chart of the day because that’s probably what everyone’s attention is on right now.

Chart of the day

In a 2 hour period starting at 6 AM London time today, Bitcoin rallied against the dollar on Bitfinex from 6400 to 7800, a 22% jump.

1-day candles: https://www.tradingview.com/symbols/BTCUSD/

In contrast, the Bitstamp chart reads only a 9% gain from 6200 to 6750.

So what’s going on here I thought?

It may have something to do with the fact that right now Tether is 3.5% off it’s dollar peg, trading at $0.965.

This is what it would look like if the market were losing confidence in Tether. You would want to dump your Tether and exchange it for Bitcoin.

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Continuing With The Show!

If we look at Coinmarketcap we can compare it to TrueUSD…

Or the Gemini dollar…

Or the Dai stablecoin…

And if you think I’m being dramatic regarding my comment about the market potentially losing confidence in Tether, take a look at Tether trading against the dollar on Kraken…

It went all the way down to 85 cents, 15% off it’s peg.

CoinDesk quoted that being an 18 month low for Tether.

This is the fundamental problem with coins that gain their stability based on trust that the fiat currency backing them is actually there.

Coins that are stabilized by algorithms like kUSD and Dai are preferable to me over Tether, Gemini Dollar and even Gold backed tokens.

As a result of this flash rally Bitcoin shorts look a big right hook falling 24% during that 2 hour period.

If we return to the daily chart for BTCUSD on Bitfinex…

The big wick on this candle shows that the previous high along with the 240 day moving average provided strong resistance.

However, the market has not given back all those gains as the price remains above the 80 day moving average which is bullish.

I don’t see any point in me covering anything else today. I think it’d be a waste of time since this is the only thing people are going to want to know about.

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