One of the reasons for the collapse of the price of Bitcoin and other cryptocurrencies may be the growing popularity of stablecoins: in them, many traders see a “safe haven” during periods of uncertainty.
Thus, for a long time, Tether USD, which is still under criticism, still firmly holds its position in the market. According to CoinMarketCap, the coin steadily holds the eighth place in the rating:
The “stable coin” rate again has slipped a little in recent days and currently stands at $0.9858. Also, the capitalization of Tether was reduced, which is now just over $1.68 billion:
However, this does not mean that the popularity of the USDT is rapidly declining in recent times, the volume of trades in this asset has been growing, and according to this indicator, the coin is second after Bitcoin:
In a pair with Bitcoin, USDT is more popular than the US fiat dollar:
At the same time, Tether’s rivals aren’t asleep – the USDC stablecoin, promoted by Circle, is already in 49th place, and will soon be on the Binance listing. At the same time, the course of this stablecoin is somewhat overvalued ($1.04), which may indicate a growing demand for this token. As in the case of Tether, there has recently been a significant increase in the volume of trading with USDC.
Also, Paxos (51st place in the rating) and TrueUSD (43rd place) are rapidly gaining popularity. The 177th position is taken by Gemini Dollar. The market price of all these coins also slightly exceeds the $1 mark.
According to Amarkets lead analyst Artem Deev, the recent desire of traders to go into stablecoins puts tremendous pressure on the BTC price, being one of the reasons for the collapse in the market. The situation is aggravated by the uncertainty on the eve of the Bitcoin Cash hard forks, the developer environment of which split into two opposing sides.
Note that CoinDesk analyst Omkar Godbole is sure that in the coming days, Bitcoin will be fixed at around $5,000.