Crypto Stabilizes, But Tether Spends Time Under $1 Peg

Crypto currencies stabilized on Thursday after a week of plunges related to the apparent collapse of the FTX exchange, but the tether stablecoin slipped below its $1 peg. For the first day this week, there was a lack of explosive negative news to pressure the market.

held above $17,000 during late-afternoon trading in New York, rising 7.55% to $17,503, according to nomics, but it remains below the $21,303 at which it closed last week. Ether jumped 11.57% to $1,305 versus $1,627 on Friday, slightly down from a mid-morning high of $1,313.

The value of the entire crypto market was slightly down at market close, coming in at $879 billion, data from show. This is trailing last week’s close of $1.06 trillion.

Attention turned to the tether stablecoin, which had trouble maintaining its peg to the U.S. dollar. In early trading it was quoted as low as 99 cents, depending on the exchange, but it was at 99.6 cents more recently, according to nomics. The coin is supposed to be fully collateralized, but it is not possible to verify that.

can trade below $1 if market panic leads to selling pressure, even if the coin is fully backed by liquid assets.

Binance coin fell 1% to $305.28 at market close after the parent exchange withdrew a tentative offer to bail out FTX. Tron, by contrast rose to 8.2 cents following the Twitter announcement that it would allow FTX customers and holders of its associated tokens to swap assets into external wallets. Its TRX
token rose 7.7% in the last 24 hours, currently trading at 5.8 cents.

A twitter post by its founder Justin Sun first hinted at the possibility of “putting a solution together” with FTX Wednesday night. By noon on Thursday the founder annouced Tron would be partnering with FTX to help Tron customers “wherever they are.”

Despite a price surge amongst the news and consequent fall from their mid-afternoon peaks, Sun-related currencies are currently trading up. BitTorrent gained 9.41%, sun token rose 5.8% and just rose 8.5%. Huobi token, however, did have a fall over the last 24 hours, closing markets at a 1.4% loss.

Publicly traded shares of companies exposed to cryptocurrencies recouped some of their losses from earlier in the week. The Coinbase exchange rose 10% to $50.92 at market close, down from a morning high of $52.12 and still below its Friday close of $56.40. Cathie Wood, the asset manager who runs Ark Invest, has been buying as the stock declines, the Motley Fool reported. Microstrategy, a business-software company with a hoard of bitcoin–130,000 as of Sept. 30—closed at only a 2% gain to $175 after opening with a high of $195 mid-morning. This is still lower than Friday’s close of $250.63

Updated Nov. 10 with late-day prices.

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