What Happened in Crypto: October 12 to October 18By LongHash
Tether crashes, and Bitcoin soars. On Monday, so-called “stablecoin” Tether’s value plummeted, and Bitcoin and other cryptocurrencies shot up around 7 percent as a result. They came back down, but not as far down as they had started from. What’s bad for Tether was good for everyone else, as investors moved money they’d been holding in Tether into other cryptos to escape Tether’s falling price. More details on the Tether crash (and how you might be able to spot the next one) here.
Overshadowed by the Tether kerfuffle, more good news. Something else happened on Monday, too. Fidelity, which manages over US$7 trillion in assets, announced a new spin-off company focused on digital asset investment that should make it easier for hedge funds and other large funds to invest in crypto. It’s difficult to estimate the extent to which this news impacted the market, because most cryptocurrency was rising fast on Monday anyway as a result of the Tether crash. But it’s possible that this news helped power that upward acceleration a bit, as a massive firm like Fidelity guiding large institutional investors into the crypto space would likely cause significant a price rise.
This news could thus also be part of the reason why most coins haven’t fallen back to their pre-Monday levels even though Tether’s price has pretty much recovered.
Bad press causes a little dip? Major cryptocurrencies dipped somewhat on Thursday, perhaps in response to a widely-republished Reuters report that cites estimates that 15% of all cryptocurrency has been stolen between 2012 and 2018. In the first half of 2018 alone, data suggests as much as $800 million in crypto has been stolen. And because the crypto markets are unregulated and difficult to track, the article says, theft victims have no recourse but to eat their losses and move on.