Cryptocurrency Market Slump Extends as Bitcoin Remains Below $8,500

Since yesterday, March 25, the cryptocurrency market has struggled to rebound to the $350 billion region.

Bitcoin and Ethereum Keep Yesterday’s Levels
Since March 25, both Ethereum and bitcoin have struggled to record any major gains or losses. The price of bitcoin declined slightly from $8,580 to $8,490, by just over 1 percent. Over the past 24 hours, bitcoin’s daily trading volume has been $4.5 billion, which is three times larger than that of Ethereum.

But, Ethereum has not been able to sustain a high daily trading volume. In fact, Tether, a cryptocurrency that is hedged to the value of the US dollar, has been the second most liquid cryptocurrency in the market, with a daily trading volume of $1.4 billion.

Tether is always an interesting indicator to consider when evaluating the state of the cryptocurrency market because the vast majority of cryptocurrency traders use Tether, instead of fiat money, to hedge the value of cryptocurrencies.

Binance, the world’s largest cryptocurrency exchange, process cryptocurrency-to-Tether pairings, allowing users to hedge cryptocurrencies in periods of extreme volatility. Often, abnormally high daily trading volume of Tether signifies instability in the cryptocurrency market, and an increase in the number of users hedging the value of cryptocurrencies to reserve currencies.