Cryptocurrency markets are higher this morning after the Tether stablecoin slipped to 95 cents on the dollar on the Kraken exchange. The move lower in Tether across the board led to a strong volume spike in Bitcoin, which moved from $6,300 to blast through previous resistance at $7,250.
Monday’s sharp move lower in the stablecoin is significant because criticisms have been levelled in the past at the claims that is each Tether is backed 1:1 by the U.S. dollar. The move is also significant because new stablecoins have recently come onto the market, including the “USDCoin” created by Circle. Fears over the Bitfinex exchange being insolvent have also been swirling and Tether sees large volume on the Bitfinex exchange.
This could be the first crack in Tether that sees traders move to other exchanges and stablecoins.