[Xangle Briefing] Stablecoin price becomes unstable due to Bitcoin’s price fluctuations
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It seems that stablecoin (substitute for the US dollar in the crypto market) prices become unstable during huge Bitcoin price fluctuations.
According to crypto disclosure platform Xangle, there were 58 cases confirmed since 2015 when the stablecoin USDT’s prices fluctuated by a maximum of $0.05 within 24 hours. Out of the 58 cases, there were 17 cases where Bitcoin prices fluctuated by more than 10% and 36 cases when Bitcoin prices fluctuated by more than 5%.
This is allegedly because some exchanges do not allow the withdrawal of fiat currencies; hence the only way for investors to cash out Bitcoin is by buying stablecoin. On the other hand, investors might have preferred USDT over fiat when Bitcoin’s price was undervalued, resulting in an overdemand of USDT.
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