Bitcoin Back Above $30,000 as Tether Holds Strong Under Redemption Pressure
2022.05.13 10:51
By Geoffrey Smith
Investing.com — The price of Bitcoin leaped back above $30,000 on Friday at the end of what had threatened to be its worst week in four years.
By 3:10 AM ET (0710 GMT), the world’s biggest crypto asset was up 13% on the Bitfinex exchange at $30,510, having fallen as low as $26,600 on Thursday. That was its lowest since December 2020.
The rebound was due largely to the easing of concerns about Tether, the world’s largest stablecoin network, which had dipped over 6% at one stage on Thursday amid concerns about the quality of its backing.
Tether rebounded to trade within a whisker of its 1:1 peg with the dollar in early trading in Europe Friday after its chief technology officer Paolo Ardoino reassured investors that over half of its reserve is held in liquid, risk-free Treasury bills. The amount held in short-dated commercial paper, which does carry credit risk, has fallen in recent weeks, Ardoino said. He didn’t give any granular details about the credit quality of the CP part of the reserve.
