On the left is Coinbase. On the right is Bitfinex. Bitcoin on the latter was more expensive by circa $400 just a few days ago. Now it is cheaper by about $20 or around the same level.
What happened? Well, one USDT was worth $1.05 on Bitfinex. Now it is back to the usual $0.99. Trading volumes, moreover, fell as low as $160 million at the exchange. Now they’re nearing $1 billion.
A bank run following confirmation that $850 million had been seized from Bitfinex related bank accounts led to less demand for USDT and more demand for cryptos on Bitfinex.
The value of USDT thus fell by 5%, with seemingly little arbitrage opportunities as it is difficult to get fiat out of the exchange.
The Finex financiers then came up with LEO, a token that apparently raised $1 billion. So bringing in new funds and presumably streamlining prices.
Allowing Bitfinex in the process to withstand yet another crisis as the Iron Exchange continues to run and doth still stand.