Home Altcoins News How Black Thursday and Friday Kick Started the Golden Era for Tether USDT?

How Black Thursday and Friday Kick Started the Golden Era for Tether USDT?

Tether USDT

A lot of big news gets expected from USDT. Tether is already one of the largest entities in the cryptocurrency space. With Bitcoin and other cryptocurrencies beginning to grow, Tether is growing with these cryptos.  USDT is already an essential part of any trading ecosystem.

In the beginning, it took some time for Tether to have cryptocurrency exchanges understand the value proposition of having USDT as a replacement for USD.

It was in 2017 that Tether got adopted on a larger scale.  During 2017, all the USDT that got created got listed with Tether Trading Pairs; this led to increased demand for the stable coin.

Crypto’s Black Thursday and Friday was the point of growth – the big boom for Tether. It all started on March 12, 2020, and March 13, 2020.

When the market crashed, people were looking for arbitrage opportunities, and they were able to see that in USDT. When there is high volatility in the market, it should be possible for investors to act fast.

When the markets crashed, those who had dollars were suffering.  It was not easy for them to move their money across. When the US announcements of border closings and national state of emergency happen, financial markets of every kind were reacting.   Those who were able to act fast were those who had USDT.

Bitcoin is very popular, and OTC desks depend on USDT for trades because, when BTC was on the cheap side, those who had USDT could buy it.

“Buy BTC cheap using USDT, arbitrage it and then sell Bitcoin at higher prices” became a trend.

When the markets crashed, the spreads in different crypto exchanges were as high as $2,000 during the Black Thursday and Friday times. Those who could make arbitrage trades were able to make tons of money.

When there were changes in the monetary policies in the United States and Europe, several institutions were able to recognize Bitcoin as a hedge. They looked at it as a way to diversify their investment portfolio.

Major institutions approached the cryptocurrency exchanges to buy several hundred million dollars worth in BTC.  The OTC desks that executed these transactions made use of USDT.

Tether provided for quick liquid utility. Now, Tether has a market cap that they never imagined to have.  The market developed confidence in USDT, and these stablecoins already have provided the template for CBDCs.

Stuart stated:  “Tethers are 100 percent backed, full-stop.”

Read more about:
Share on

dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×