(BTC) began a downward slide after weeks of stagnant prices, sinking below the $6,300 level despite expectations that the stability could precede a rising trend. Here are five probable reasons for the souring sentiment.
As of 8:30 UTC, BTC prices moved to $6,281.17, down 4.2% in the past day. Curiously, BTC traded at $6,312.60 on Bitfinex, which saw the highest activity among Bitcoin markets. On Coinbase Pro, the price slid as low as 6,212.51.
Here are five possible reasons for the souring sentiment.
Bitfinex jitters: In the past few days, the relationship between Bitfinex and Tether (USDT) exhibited some curious developments. After Noble Bank showed signs of trouble and stopped servicing Bitfinex and Tether, loss of trust in the exchange and the stablecoin led to fund withdrawals. In the past month, half of the BTC deposited in the Bitfinex cold wallet flowed out. Additionally, 100 million USDT left circulation. On Kraken, someone tried to sell millions of USDT for dollars, depressing the price to $0.98, which is a significant movement for a dollar-pegged coin.
This exodus from the Bitfinex and Tether ecosystem shows a potential loss of trust. Since Tether is so influential and has spread to most of the leading exchanges, this loss of trust may be a trigger for what the crypto community sees as a new Mt. Gox even…
This article appeared first on Cryptovest
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