Tether has reached its lowest level since February, falling to a low of $0.95 recently while currently standing at $0.975 at the time of writing.
The dollar pegged token usually does not fall below $0.98. Very rarely falls below $0.92, and even when it does so fall it usually quickly races towards $1. Not this time.
As can be seen, the lowest point it ever reached was in April 2017 at $0.89. It briefly fell in November 2017 and in February of this year, but in all cases Tether saw a red candle for just one week, presumably due to fast price action.
This time, however, the currency has been in red significantly below $1 for three weeks, a very first since it started trading on Kraken.
It’s market cap has also fallen by one of the biggest levels yet, down by around $400 million in the past five days to $2.4 billion.
What’s more, Tether’s trading volumes are considerably down to just under $2 billion from the usual $4 billion or so.
Bitcoin’s trading volumes have also fallen to one of their lowest level for the entire year at just $3 billion.
Eth has never seen such low trading volumes for all of 2018 if our memory of quite often checking these stats serves well. Down now to just $1.1 billion.
Bitfinex has recently suspended fiat deposits as a bank account they stealthily secured with HSBC has now presumably been closed.
That means the exchange can not currently move fiat around. Thus neither can Tether. They might be trying now to stealthily secure another bank account, but it is unclear whether they will continue to be able to do so.
Without the ability to move fiat, it may well be the case that Tether can not keep its peg. This situation has happened before however in early 2017 when premium at Bitfinex reached very high levels.
Yet at the time Tether’s market cap was far less, trading volumes at Bitfinex plunged, and the exchange basically became somewhat irrelevant.
That’s when Tether enters the scene in a noticeable manner, with its market cap quickly rising starting around April-May 2017, then spiking almost vertically from September 2017 onwards.
That may have contributed to Bitfinex suddenly gaining top trading volumes, rising back from the ashes after a hack.
Now, whether they will be able to resume normal operations once more remains to be seen. Just as it remains to be seen whether tether will get back to its peg.