Bitcoin trades at premium on Bitfinex after tether sell-off

October 18, 2018
Chris Wheal

Bitcoin has been trading on Bitfinex at nearly a $300 premium over rival exchanges on speculation holders of tether were selling the dollar-backed stablecoin in favour of the world’s biggest cryptocurrency.

Bitcoin trades at a premium on Bitfinex exchange

Tether has broken away from its tight trading range around the $1 level in recent sessions as investors feared the company that operates the token were no longer backing it one-for-one with the US currency.

Tether response

OpenLedger was in contact with the Tether network on Monday to ask for an explanation for the break lower and received an emailed reply from chief compliance officer Leonardo Real that said:

“We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by US dollars (USD) and that assets have always exceeded liabilities.”

Tether’s value now seems to have stabilised around the 95 cents level – but appears to be having difficulty recovering back to $1.

Bitcoin’s premium on Bitfinex, meanwhile, had subsided on Thursday to less than $200, trading at $6,719, while data on CoinMarketCap showed it to be trading at $6,532.

Apart from a 5% gain for stellar lumens there was little movement in the cryptocurrency top 10 by market capitalisation.

Price round up

Here’s a round up of the top 10 at 11.15am on Thursday [London time] – all moves and value data taken from Investing.com:

  • Bitcoin +0.2% at $6,670
  • Ethereum -0.5% at $211.73
  • Ripple XRP -0.3% at $0.48
  • Bitcoin cash -0.8% at $458.40
  • Eos +0.3% at $5.56
  • Stellar lumens +5.1% at $0.25
  • Litecoin -0.1% at $54.56
  • Tether +0.1% at $0.96
  • Cardano +2% at $0.08
  • Monero +1.1% at $109.70
Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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