A Possible Fall In Tether’s Price May Benefit Bitcoin as Traders Buy BTC with USDT for Liquidity
Bitcoin is considered to be the largest cryptocurrency in the market today, this is pretty obvious, as it has more than half of the market share in the whole crypto market. Since the token lost some of its price recently, it has caused a domino effect that basically made all altcoins lose value as well.
What would happen if other important tokens were to lose value, though? Would they drag Bitcoin’s price down together with them or BTC would rise? Tony Vays seems to believe that it would be good for the most valuable crypto asset in the world if other tokens like Tether lost their price.
The crypto and Bitcoin enthusiast has recently commented on this topic. According to him, Bitcoin is the best way to diversify your portfolio while other crypto assets are not that great, especially if you are already invested in Bitcoin.
According to him, most of the other cryptocurrencies are dependent on Bitcoin but not the other way around, meaning that BTC is not dependent on Ethereum, XRP or Litecoin. He also affirmed that BTC would go up higher than other altcoins, while they generally go down much faster, but are not so fast when getting their prices back, despite being more volatile, generally.
He affirmed that people who wanted to hold Bitcoin should just do it without being too concerned with the rest of the crypto market, as most tokens were only good for speculation. You can keep trading from one token to another and make money this way, but the best long-term investment is Bitcoin, that much is certain.
Tether Price Could Affect Bitcoin
The investor has also talked about the whole situation involving Tether and Bitfinex, in which Bitfinex was accused of using Tether’s funds to cover up losses. This, he believed, could make the price of the stablecoin go down.
If the price indeed goes down, Tone Vays believes that Bitcoin could get a lot of value, making it big news for BTC investors since the prices of the token are believed to have bottomed some time ago and this could push prices upward.
In order to know whether this would happen, though, we need to wait and see what happens with the price of Tether (USDT) and determine whether it will be affected by the volatility and go down now or not.
However, it is believed that many individuals do not realize what the Tether situation fully entails. Case in point is just because a drop in Tether's price won't necessarily result in the price of $BTC to fall. One could argue there is even more probabilty of a cause for the bitcoin price to actually rise, as traders run from Tether and dump USDT tokens to buy up BTC knowing it is the coin with the most market liquidity.
Live Bitcoin (BTC) Price:
1 BTC/USD =$56,276.5099 change ~ -1.29%