This week goes down as one of the worst ones in recent months. The market has in the last 48 hours suffered a massive drop that has seen billions wiped out. For Bitcoin, the father of cryptocurrencies, the last day has seen it wipe out around $1,000. This has been a drop of around 8%. For other coins, altcoins, the drop has been far worse. Nealy all altcoins have recorded drops in the double digits. This has ranged between 10% to 30%. For many of crypto investors, they have sort refuge in stable coins such as Tether.
Following the drop, many coins have lost their place in the ranking. At the top, there has been a new addition. Tether, the world largest stable coin by coinmarket has climbed to fourth place.
Tether Joins The Top League
This is behind Bitcoin, Ethereum, Ripple and Bitcoin Cash. This something that is expected to rattle some feathers among hardcore cryptocurrency enthusiasts. Tether is a USD backed cryptocurrency and for the last year been facing accusations of manipulating Bitcoin prices. Its rise above most cryptocurrencies comes as no surprise as more people seek haven in it following the market crash.
How Dire Is The Situation And What Triggered It?
The market crash has seen Bitcoin drop below $9,000, a first since June. Other altcoins have also been testing new lows. in total, the market has wiped out more than $20 billion. While most coins have found stability, there is still a danger that they could retest lower-key supports. Peter Schiffs says that the current drop could see Bitcoin fall to the $4,000 or lower range. For him, the asset topped at $10K and the only way now is down.
The reason for the crash has been speculated to the disappointing Bakkt launch. This was anticipated to attract traditional investors such as Wall Street but has had a disappointing start. This has been coupled by a drop in Bitcoin hash rate on Tuesday which fell by 40%. Fortunately, this has since recovered.
The market is down but not out. Tether’s time up in the ranking list, limited.
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