In the last 24 hrs the star cryptocurrency, Bitcoin has plunged from its crucial support level of $23K. Also it happens to be the second day that Bitcoin is flashing negative marking. However, the global crypto market cap is still holding on to its $1 trillion mark, but a few figures away from dropping below the mark.
At the time of writing, Bitcoin is selling at $22,725 after a fall of 1.61% over the last 24hrs.
Meanwhile, a renowned crypto analyst and host at Coin Bureau channel, Guy Turner is hoping for one of the US dollar-pegged stablecoin to lead the crypto market. The analyst informs his 2.2 million subscribers that Circle’s USD Coin (USDC) which is the second largest stablecoin will soon overshadow Tether’s USDT.
USDC To Overshine USDT
As per Guy Turner, the USDC’s supply has spiked massively in the last few years. This is one of the reasons for him to consider USDC to become predominant stablecoin in the next two years.
However, the analyst portrays concern in connection with Circle’s USDC as it is backed by Goldman and partnered with BlackRock. Turner then talks about USDC’s willingness to censor transactions if asked. On the contrary, he believes that the stablecoin portrays a healthy competition that boosts for better products. Further he views this as an opportunity where people can diversify their stablecoin holdings.
Hence, the strategist asserts that this is the reason why he believes Tether will emerge as one of the fully audited stablecoin and will address the funds completely. However, until this happens, Guy Turner is confident that Circle’s USDC will continue to portray its massive growth.
This Cryptocurrency Critic Identifies a Drop in Tether’s Market Cap! What This Mean For Crypto Market
As worries about contagion risks persist, the cryptocurrency market has been under a lot of pressure recently. This happened after FTX, the second-largest cryptocurrency exchange in the world after Binance, collapsed. The failure of a $32 billion cryptocurrency exchange has brought stablecoins to public attention.
Bitcoin and cryptocurrency critic Peter Schiff took to Twitter and shared some information that he believes is concerning for Tether, the third-largest cryptocurrency and the largest stablecoin. Schiff shared a CoinMarketCap chart of Tether’s market capitalization, which showed a decline.
He uses the fact that Tether has never experienced a market cap decline as support for his claim.
Even as the outflows increased, the price of Tether drew close to its $1 parity level. On Friday, as cryptocurrencies stabilized, USDT was trading at $0.99.
In order to explain concerns and uncertainties among market participants, Tether’s CTO Paolo Ardoino wrote a thread explaining the connection between FTX and its USDT coin during the FTX crash.
He clarified that while Alameda has issued and redeemed a significant amount of USDT in the past, they do not have any credit exposure that has grown with the troubled cryptocurrency trading company.
The Terra, Celsius, Three Arrows, and most recently, the FTX collapses all contributed to the bear market that has gripped the crypto sector during 2022.