- Bitcoin price back at $9,500 with Binance undergoing unscheduled system maintenance and having Tether shortage, and Tether minting $60 million worth of USDT
- Open interest in unregulated exchange takes a hit while surges on a regulated platform
Ever since the past week, the Bitcoin price has been on a rollercoaster ride. Last weekend, Bitcoin went below $10,000 after staying above this level for about five days. Although the start of this week was a red one, soon we jumped above $10k to $10,300.
But, the world’s leading cryptocurrency didn’t waste any time to make its way into the red again. Going as low as $9,484 today, BTC/USD is currently trading at $9,570 with 24 hours loss of 5.40%, as per Coincodex.
Binance & Tether in the Mix
A good surge in Bitcoin price then an equally bad drop happened the day leading cryptocurrency exchange Binance went on six-hour unscheduled system maintenance. Earlier this week, Binance CEO, Changpeng (CZ) Zhao also issued a performance report where he talked struggling to tackle the huge influx of users because of the increased market volatility these past few days.
There have also been reports of the exchange having a Tether (USDT) shortage. Several major traders were not able to position their trades because of the shortage in the popular stablecoin to backup margin loans.
As we reported, before Binance went on this unscheduled maintenance, USDT minted $60 million worth of USDT that Bitfinex and Tether CEO, Paolo Ardoino said, was “authorized but not issued.” However, some speculate Binance and Tether could be the reason behind this dump.
We should be working towards building a better market. Not emulating the failing one. https://t.co/Sfhpw8sMhn
— Mati Greenspan (@MatiGreenspan) February 20, 2020
BitMEX OI Drops while CME’s Spikes
Meanwhile, this drop in price also caused open interest on unregulated crypto derivatives platform BitMEX to tumble below the much talked billion-dollar level after a massive liquidation on the platform.
BitMEX XBTUSD Open Interest fell back below $1bln yesterday on $130mln+ liquidations pic.twitter.com/47t8u099ip
— skew (@skewdotcom) February 20, 2020
On the positive side, the regulated bitcoin futures market, CME Group recorded more than 1 billion, $1.1 billion bitcoin futures trading on its platform, which has been the third time it happened. Open interest on the platform is also making new highs every other day.
$1.1bln bitcoin futures traded yesterday at CME after the long weekend – only third time we record > $1bln pic.twitter.com/dxoblqOvUb
— skew (@skewdotcom) February 19, 2020
When it comes to price, the fact that Bitcoin is holding at $9,500 is “a good sign.” However, if we lose it, trader Crypto Michael sees $8,750 as the next level target.