Bitfinex will trade XTZ in two pairs, immediately including USD positions. More advanced options for trading are set to follow:
“Trading for XTZ will be available against BTC and USD. Margin trading and P2P funding will be enabled gradually as liquidity develops.”
After the news, XTZ prices started to slide as of 16:30 UTC on Monday, plunging from around $1.67 to $1.43. At 6:00 UTC on Tuesday morning, XTZ traded at $1.42, with a 24-hour loss of 9.6%. Volumes increased immediately after the crash to more than $7.4 million equivalent in 24 hours.
The addition to Bitfinex has the potential to change the trading profile of XTZ. Currently, about 50% of XTZ volumes are against Tether (USDT) through Gate.IO and HitBTC. This prevalence of dollar-like positions brings a different logic. However, XTZ is one of the coins quickly dropping in Bitcoin-denominated prices as well, sinking by more than 60% in the past three months, from 0.0007 BTC to 0.0002 BTC.
The Bitfinex development has raised hopes of inclusion on more exchanges soon. XTZ supporters believe the sell-off is temporary:
Bitfinex volumes increased immediately, making up 20% of XTZ trading, according to updated information from Coinmarketcap. As of 7:00 UTC, volumes were above $1.4 million in 24 hours, with more activity anticipated.
The Tezos project expects renewed activity and robust price appreciation to make up for the losses. The launch of the crypto ecosystem for Tezos comes relatively late and will have to prove its consensus solution is better compared to other platforms.
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.