Tether (USDT), the most popular USD-backed “stablecoin,” just fell below the $0.90 mark on Bitfinex as the regular investors turned to Bitcoin (BTC) and other cryptocurrencies, worrying about the USDT reserves. At the same time, Bitfinex announced it would end its fiat deposit freeze.
According to CoinMarketCap, Tether (USDT) experienced a drop, reflected by a 5% increase in Bitcoin (BTC). However, at the moment of this writing, Tether (USDT) trades at $0.965, falling by about 2.5% over the last 24 hours. On the other hand, Bitcoin (BTC) sells at $6,624 after surging by about 5% in the previous day.
Bitfinex paused deposits in fiat currency for “certain customer accounts” after they suffered some “processing complications.” However, Bitfinex announced that they would end fiat deposits freeze, about at the same time Tether (USDT) dropped below the $0.90 mark.
“How any rational party can claim insolvency when the opposite is there for all to see is interesting and, once again, perhaps indicative of a targeted campaign based on nothing but fiction,” Bitfinex representatives stated.
Bitfinex To End Fiat Deposit Freeze, While Tether (USDT) Fell Below The $0.90 Mark
Last Thursday, when Bitfinex revealed that fiat deposits are paused, some investors became suspicious due to the lack of details from Bitfinex regarding the mentioned “complications” that made the exchange halt fiat deposits.
“We are working to implement a new and increasingly robust fiat deposit system to be available in the next 24 hours, by Tuesday, October 16th, 2018, to allow for the efficient processing of the fiat deposits,” reads the latest update on the situation, offered by Bitfinex.
However, the Bitfinex decision to pause fiat deposits triggered some reactions in traders who turned to Bitcoin (BTC) and other cryptocurrencies, concerning the Tether (USDT) reserves. The movement caused Tether (USDT) to drop below the $0.90 mark on Bitfinex, eventually, and to generate a slight surge in Bitcoin (BTC) value against the US Dollar.