RATE Group | Bitcoin Demand Pushes Tether Below $1 for Longest Stretch Since March
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Bitcoin Demand Pushes Tether Below $1 for Longest Stretch Since March

19 May Bitcoin Demand Pushes Tether Below $1 for Longest Stretch Since March

Posted at 00:40h in Bitcoin News by

Tether, the oldest and largest stablecoin tied to the U.S dollar, has fallen below par value for the longest stretch since bitcoin hit 12-month lows in March. Tether maintained or exceeded par value consistently during bitcoin’s subsequent two-month rally. 

The cryptocurrency, also known as USDT, dipped below $1 on Friday and has stayed below that mark as of press time Monday, according to data from exchanges Kraken and OkCoin, which support two of the largest USDT/USD markets by volume. Bittrex and FTX, which also support the trading pair, showed similarly discounted tether prices. 

One possible explanation for the price dip is persistently strong buying pressure for bitcoin, especially on futures markets. Tether is typically used as a stand-in for U.S. dollars on crypto exchanges, a currency for buying other assets rather than an investment. Big shifts in demand can cause tether to temporarily deviate from its peg.

For instance, the bellwether stablecoin spiked as high as $1.03…

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