As the collapse of the cryptocurrency market continued on Thursday, analysts reported Site that traders should keep a close eye on the price of Bitcoin (BTC) on Coinbase , as well as the Tethers (USDT) rate to return to its dollar peg to understand when the worst pressure from sellers could end.
If [USDT] will restore its peg, it will be a very positive sign for the market, said The site Marcus Sotiriou, Analyst, Digital Asset Broker GlobalBlock .
He added that concerns about whether USDT would be able to maintain its peg likely contributed to the pressure from sellers seen over the past 24 hours, given how important Tether is to the entire crypto ecosystem.
At the time of writing (14:34 UTC), Tether’s rate was still slightly below its $1 peg, trading on Coinbase at around $0.993. The price, however, has seen a strong recovery since today, when the stablecoin fell to $0.91 on some exchanges as panic in the market put pressure on the peg.
Tether is on sale due to extreme panic following the ust crash, Sotiriou said, explaining that some investors are concerned that Tether doesn’t have the reserves to back up its 1:1 stablecoin with the U.S. dollar.
However, the analyst stressed that people underestimate the support of the stable Tether coin, and said that the USDT peg is likely to be fully restored in the coming days.
Look for Coinbase Awards
In addition to being pegged to USDT, Sotiriou suggested that traders looking for a price bottom explore the spot price of BTC on Coinbase compared to other major exchanges such as Binance .
[] If Coinbase BTC’s spot price can overtake Binance BTC’s spot price (as it is currently discounted), it would also be a positive sign for the market, Sotiriou said.
Such a shift suggests that institutions that typically favor Coinbase over Binance are buying more bitcoin than retail investors, a sign that professional investors are becoming more confident in the market, Sotiriou said.
BTC Was Relatively Strong
Meanwhile, Ben Kaselin, head of research strategy at crypto exchanges AAX , said that bitcoin was relatively strong compared to most altcoins during the last sell-off, and that fundamentals such as the number of bitcoin addresses containing at least 0.1 BTC have risen.
Caselin went on to say that it is during such events that institutions can observe how liquid bitcoin is and how it performs during a crisis. As a result, we can expect more investors to channel capital into bitcoin, predicts an AAX analyst.
Finally, Kaselin said that as a result of the collapse of UST and the Terra Network (LUNA) more broadly, there could be a big shift in dominance in favor of both Bitcoin and Ethereum.
Thus, the events of recent days may lead to the fact that the market will again focus on quality, decentralized networks, and not on frivolous coins and risky experiments, the analyst said, adding that this can be incredibly optimistic for one asset with which it all began, bitcoin.
At 14:34 UTC, BTC was $28,750, down nearly 8% in the last 24 hours and down 28% in the last 7 days. At the same time, ETH was trading at 1961, down 16% on the day and 33% on the week.
#Keys #Bitcoins #Decline
