The roles were reversed in the crypto market on Sunday, as supposed stablecoin Tether (USDT) lost 3.8% of its value, falling from $1 to the $0.96 range.
Much like in October when Tether’s fall caused a huge Bitcoin spike, today’s fall by USDT coincides with a generous pump to the altcoin market.
Over $2.5 billion entered the global crypto market on Sunday, and very little has found its way to BTC. Instead, most of it was distributed among the major altcoins.
Major Alts Boost
Among the top dozen or so coins and tokens by market cap, several topped 10% gains for the day, including Dash (DASH), Litecoin (LTC) and Cardano (ADA). That’s without counting the extravagant gains recorded by Bitcoin Cash (BCH), which has continued to surge following this morning’s coverage.
Among the other major alts, Tron (TRX), Monero (XMR) and EOS (EOS) felt generous +5% surges, while BTC, ETH and XRP were notable for their relative lack of movement, with each rising by around 1% only.
Altcoins Find Volume
Of the $2.5 billion which entered the global crypto market, only half a billion found its way to Bitcoin. A more significant portion founds its way to Bitcoin Cash, with close to $1 billion entering BCH markets over the weekend.
Ethereum’s volume rose by around 15%, gaining $200 million in new trades, and most of the altcoins in the top ten felt boosts of their own. Cardano trades more than doubled, from $15 million to $40 million, while EOS and Litecoin both gained more than $100 million from Saturday through to Sunday.
Overall, the global crypto market cap rose by $3 billion in line with the increased trading activity, amounting to a 1.5% increase. Such a movement would barely have registered on the news feeds at the start of the year, but the apparent divergence of the major altcoins from the actions of Bitcoin will likely trigger a fresh round of optimism amid the fourth quarter of the bear market.
Tether (USDT) Loses Dollar Peg Again
The value of Tether (USDT) fell 3.8% from $1 down to $0.961930 in a slow bleed over twelve hours on Sunday morning. The fall comes only a day or so after Tether regained its dollar peg following last month’s drop.
No catalyst has been suggested for the sudden fall of USDT, however it coincides with the sudden un-Tethering of Bitcoin Cash following its surge this weekend. Over one third of BCH volume came from USDT trades on Sunday.
The drop also comes amid news that Tether has opened new banking ties with a bank in the Bahamas – a move which was supposed to ensure the continuation of its dollar peg.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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