Biggest Tether spike since March 2020 during latest Bitcoin crash

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Tether normally is the coin that’s always getting bashed whenever any famous crypto analyst discusses his views on where the top 10 coins are going and how they are looking from a technical analysis point of view. It’s also pretty clear that you can’t say anything interesting about Tether (price wise).

This past weekend’s Bloody Sunday, which saw Bitcoin drop 15% in a matter of hours, actually gave us some small price action. We saw the biggest spike since March 2020, when the Bitcoin crashed below $4,000.

Safe Haven Tether

I remember seeing videos by Scott Melker (technical analyst known as Wolf of All Streets), Sam Bankman-Fried (CEO of FTX Exchange) and Charles Hoskinson (founder of Cardano) in which they all discuss the top ten coins. They are quite enthusiastic when announcing their views of Bitcoin, Ether and others, but when it comes to Tether, they abandon discussing the subject quite soon as Tether never moves.

#xrpcommunity
Crypto Down
Tether Up pic.twitter.com/norKXZB5Dj

— JamesRuleXRP💫HODL💫DYOR💫Don’t FOMO🚀👊😎 (@RuleXRP) April 18, 2021

However, during the latest crash past Sunday, Tether spiked to $1,004 as Bitcoin started to decline. We haven’t seen this volatility since March 2020.

Blockchain data analytics firm Kaiko also said that:

During a crash, traders will race to sell their bitcoin in exchange for tether, which is similar to the U.S. dollar in that it is recognized as a temporary safe haven amidst extreme price volatility.

A sudden increase in buying pressure for tether often has the effect of causing positive drift from the stablecoin’s one-to-one peg.

It’s obviously that when Bitcoin drops suddenly, the price of Tether will be influenced by that. The reason is of course that traders are parking their Bitcoin in Tether for the time being and that a further drop is coming.

Check out how to earn interest with your Tether.

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