The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Bitcoin Premium on Bitfinex Spikes After Allegations of $850 Million ‘Cover-up’

by CryptoCompare
May 2, 2019
in HodlX
HodlX Guest Post  Submit Your Post
 

As allegations from the New York Attorney General surrounding Bitfinex’s “cover-up” of an $850 million loss of funds have shaken crypto markets, a large premium on Bitcoin and other high-cap altcoins has taken hold on exchanges using USDT as a trading pair? – ?particularly on Bitfinex.

The news sparked a huge jump in the “Tether risk premium,”? a measure of how much the market views Tether as riskier than USD when trading Bitcoin.

When the news broke last Thursday, April 25, markets reacted strongly, with the Bitcoin price dropping over 5%. Interestingly, however, on Bitfinex and other exchanges using Tether?, ?there was a sizable surge in the price of Bitcoin. Sellers rushed to shed their USDT?– as concern mounted about Tether and Bitfinex’s solvency. It is thought to be especially high on Bitfinex as traders are buying Bitcoin to withdraw their funds via the more reliable Bitcoin blockchain rather than attempting fiat withdrawals using Bitfinex’s strained banking network.

Looking at the chart we can see the clear difference in the price of Bitcoin on Bitfinex and other exchanges with no ties to Tether, such as Coinbase and Bitstamp. At the time of writing, if you were to buy a Bitcoin on Bitfinex you would pay $300 more than on Coinbase or Bitstamp. Yesterday, this premium hit a high of $346 ?– ?a risk premium of 6.7% ?– ?as shown in the chart.

What’s more, even other Tether-based exchanges such as Binance and Huobi are seeing far smaller premia than on Bitfinex. At the time of writing, both Binance and Huobi have less than a $100 premium over Bitcoin to USD prices.

This isn’t the first time that concerns about Tether and Bitfinex have shifted the markets.

On March 31, 2017, after Bitfinex and Tether lost their banking partnership with Wells Fargo, the premium soared above 8%.

Last year, concerns about Tether’s USD backing, Bitfinex’s banking arrangements with Noble Bank and CFTC subpoenas, caused surges in the Tether premium? which ?hit a staggering $1,000 in October after false rumors surfaced about Binance delisting USDT.

What’s unusual, however, is that these dramatic events last year?, in addition to a growing list of rival stablecoins?, seemed not to put much of a dent in Tether’s usage. As shown in our March Exchange Review, USDT still accounted for over 98% of trading volume with Bitcoin out of the top 4 stablecoins. Whether the latest news, which may prove more serious, has a more marked effect on Tether’s dominance, remains to be seen.


This article by CryptoCompare Research first appeared on the CryptoCompare blog. You can check out the original post here.

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Radix Babylon Upgrade Marks New Era for Web 3.0 User and Developer Experience
    September 28, 2023
  • Tyrion Set To Decentralize the $377 Billion Digital Advertising Industry
    September 25, 2023
  • Hydranet Launches Layer Three Dex – A Game Changer for Trustless Cross-Chain Trading
    September 25, 2023
  • Ottochain Homage to EVMOS and Ethereum Layer Two
    September 21, 2023
  • Algorand Foundation Announces Build-a-Bull Hackathon in Collaboration With AWS
    September 20, 2023
  • OKX Achieves SOC 2 Type II Certification, Demonstrating Its Industry-Leading User Safety, Security and Compliance Standards
    September 20, 2023
  • Dexalot Unveils SimpleSwap and SimpleView Features for Enhanced User Experience
    September 19, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$26,952.22
$26,952.22
0.3%
Ethereum
$1,676.17
$1,676.17
0.33%
Cardano
$0.250239
$0.250239
1.16%
XRP
$0.517245
$0.517245
2.19%
Dogecoin
$0.061909
$0.061909
0.29%

Spotlight

  • Is Ethereum Bottom In? Top Analyst Reveals the ‘No Questions Asked’ Level He Will Start Reaccumulating ETH
    September 23, 2023
  • This Catalyst Will Catapult Bitcoin and Have a ‘Dramatically’ Positive Impact on Altcoins: Anthony Scaramucci
    September 23, 2023
  • Over $440,000,000,000 in Bitcoin and Other Cryptos Could Be Wiped Out Before Market Bottoms Out: Nicholas Merten
    September 23, 2023
  • Trader Says Dogecoin Rival Has Additional Upside Potential, Updates Outlook on Bitcoin and Worldcoin
    September 23, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash • Financeflux •
Industry Announcements

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl