Bitcoin Watch: Bitcoin rallies close to USD7000, but ‘stablecoins’ see disruption

Bitcoin jumped to a high USD6,960 today, representing the crypto’s highest value since 05-Sep-2018.

While Bitcoin is performing quite strongly, the same cannot be said for Tether, a major driver of the ‘stablecoin’ movement in the crypto world. The business model of Tether is that the token is ‘tethered’ to the USD, meaning it is theoretically backed 1:1 by USD held in a bank account that is available on demand. According to Coinmarketcap, it is the second most traded cryptocurrency in the market after Bitcoin.

However, Tether slid to an average price of USD0.94, before dipping to as low as USD0.90 on some exchanges. While Tether has not always held exactly 1:1, the drop has been much more sustained and has been widening, according to the Financial Times. The oddity has caused a slew of concerns around  the legitimacy of Tether and the financial backing of the currency.

Stay updated here with how the cryptocurrency is tracking: