The Tryst: CoinBase, Binance, and Tether – What You Need to Do
These are perilous times for Tether as its downswing seems to be unstoppable! The bad news is that this could plunge the crypto market into another free fall.
For the crypto trader, this is an opening to hlod if you are trading with your funds. For those who are into margin trading and borrowed funds, it is safe to quickly do a sell off.
An Understanding of the Situation
As at the time of this report, Bitcoin was trading for $6,610 to the USD on Binance exchange and on Coinbase, it was trading for $6,390. This shows an underlying difference in price of almost $220.
Coinbase Trade Screen Grab
Binance Trade Screen Grab
The difference is unsustainable, and it shows that there is a price manipulation going on in between the lines and behind the scenes. What this means is that if you move your BTC from Coinbase to Binance, you will reap $220 profit for the move.
Tether is being heavily defended with quotes on multiple fronts and this explains while it is falling on Binance exchange and leaping on CoinBase. The battles facing USDT has been reported widely in the media and somehow, it is still a sore point right now.
Total market capitalization of all cryptocurrencies is down to around $210.16 billion as of press time. Having reached as high as $220.2 billion Oct. 15., the market saw a correction and has traded sideways for several days.
Experts have weighed in on Bitcoin’s low October volatility in particular. Prominent venture capital investor Garry Tan has argued that what he dubs the “crypto winter […] makes it safer for super-long-term oriented Yale-model institutions to enter at a price that isn’t dangerous.”
It points to the fact that Tether is fighting for its life right now and for traders holding USDT positions, it might as well be the right time to play safe by holding Bitcoin positions instead.
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