According to the findings of BitMEX research, BTC premium kept rising on Bitfinex all over the past 7 days, which coincides with the period when the USDT stablecoin, known as Tether, began displaying a price decrease.
As of now, all cryptotraders on Bifinex are asked to buy or sell dominant digital currencies, such as BTC and ETH using Tether, because the deposits into the HSBC banking account of the cryptoexchange have been suspended.
With the price of Tether falling from 1 USD to 0.098, which accounts for approximately 2%, BTC premium rose up by the same percentage.
Alex Kruger, a renowned cryptotrader and digital currency analyst claimed that the Tether price decrease can be explained by three factors.
Firstly, cryptotraders are opting for audited and regulated stablecoins, such as GUSD and Pax. Secondly, cryptotraders sell Tether to buy digital currencies. And finally, the concerns associated with banking services acquired by Tether LLC.
Specifically, because of the Noble Bank’s bankruptcy and unclear relationship of Bitfinex and HSBC, it remains questionable if customers can still trade Tether at its supposedly base price of 1 dollar.
Tether LLC has not performed an audit since September 2017 and has not given any information to the cryptocommunity regarding its partner banking institution, which holds the Tether’s stablecoin in circulation.