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It depends upon where you think the money is going. If you believe people are parking their assets in USDT, then yes, you'd expect there to be upward pressure o
by joosters 4y ago
It depends upon where you think the money is going. If you believe people are parking their assets in USDT, then yes, you'd expect there to be upward pressure on the price of tether.
If instead, people are getting out of crypto altogether, they won't be holding USDT, instead they will be getting hold of actual dollars (which, depending upon the coins, might involve selling a random coin for USDT and then trading that for USD). In that case, there would be selling pressure on USDT.
- curiousllama 4y agoYou’re right in the abstract, but in the specifics, Tether is deviating from the market in a worrying direction. Just a worrying signal.
- nuclearnice1 4y agoSounds right but if there was a general departure from crypto, I don’t expect Phire’s observation that “USDC, TUSD and BUSD, they are indeed drifting slightly high” to hold.
- nix0n 4y agoDeparting from crypto is generally done in two steps, first convert from speculative to stable then convert from stable to fiat. If some exchanges are making the second step much harder than the first, then a lot of people attempting to depart crypto could have the effect that we're seeing.
- nuclearnice1 4y agoSounds plausible To elaborate tether is making the switch to dollars harder so people are preferring other stable coins?
- nix0n 4y agoNo, I think the prices are going up because that's where the money gets stuck. People don't want stable coins, or any coins, they want fiat (they got into unstable coins as a way to get more fiat).