Bitcoin's price on Bitfinex, the cryptocurrency exchange that reportedly operates Tether LLC, surged from $6300 USDT to $7500 USDT early this morning as the price of Tether, a supposed US Dollar stablecoin, fell to $0.85 against the Dollar.
The sudden dump of USDT led to a 15% fall for the supposed Dollar pegged stablecoin. Bitcoin is trading for a premium on exchanges such as OKex, Binance, and Huobi that do not have Dollar backing but rather rely upon Tether is a stablecoin representing a Dollar.
On major fiat-to-cryptocurrency exchanges, the price of Bitcoin surged above $6800, eyeing a breakout. It is evident, at this time, that traders are dumping USDT for cryptocurrencies such as Bitcoin or other Dollar pegged stablecoins such as TrueUSD or Gemini Dollar.
Some analysts are calling that a large influx of capital from Asian markets is also responsible for the Bitcoin surge. Whether the Bitcoin price surge is due to a collapse of Tether or influx of fresh capital from Asia is of less significance at the moment as it has allowed Bitcoin to escape its yearly low volume level of $3 billion to being now over $4.8 billion.
Amidst the chaos of the Tether collapse traders are looking for the breakout of Bitcoin above the $6800 USD price, which is likely to signal a new cryptocurrency rally.