Tether (USDT) Trading Comes to Dominate Bitcoin (BTC) Volumes
As prices started sliding below $3,800, the share of USDT pairs increased to record levels.
Bitcoin (BTC) saw the influence of Tether (USDT) increase dramatically as selling accelerated in the new week. BTC dropped in the early hours on Monday, trading at around $3,796.03 as of 7:20 UTC. The price is down just 1.76% in the past 24 hours, but the new week sell-off is starting to worry traders.
Based on CryptoCompare data on Monday, BTC trading has above 77% of all activity happening in the BTC/USDT pair. The record weight of Tether spread to all markets, making it responsible for more than 27% of crypto volumes. The usage of stablecoins shows that trading is currently limited to the crypto ecosystem, with little inflows of fiat funds. Due to the difficulty of handling fiat, stablecoins are also taking over.
In the case of BTC, the Monday sell-off shows that USDT is still used as a safe haven. With BTC volumes exceeding $7.8 billion in the past 24 hours, the increased activity sees the stablecoin used as protection against volatility.
BTC market prices have been stuck in the range of $3,800 to $4,200. However, the current stagnation is starting to remind of the almost zero volatility around the $6,000 level, which was followed by a sudden crash to $4,000 and below. Expectations are that a BTC bottom is yet to materialize as 2019 progresses. Extreme predictions have prices sliding below $1,000 again.
In the meantime, Bitcoin’s network is registering high activity, with mining once again between 40 and 50 EH/s. The number of transactions keeps growing, but some note this is not the result of organic usage. Instead, the Veriblock project may be taking up bandwidth and continue to do so after its mainnet launch on March 15. In the past weeks and months, over 30% of the BTC transaction volumes may have been due to Veriblock or other projects using the network to secure their own ledgers.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.