Bitcoin steady, Tether still trading at a discount


Bitcoin prices held on to Monday’s gains but failed to get a further bump after news Fidelity, the financial services giant, would begin offering crypto trading and custody services for hedge funds and sophisticated investors.

Yet, while price reaction was somewhat muted, the crypto community is hailing the news as a major win for the industry. “This is a huge step forward in mainstream adoption of cryptocurrency,” wrote Bruce Elliott, president of ICOx Innovations, a cryptocurrency rewards and payments system.

“For many reasons, seasoned investors have either been shut out of crypto markets or have been slow to invest up until now. This is a signal that financial markets and regulators are gaining clarity and comfort on the outlook for trading cryptocurrencies,” he said.

Read: Fidelity launches cryptocurrency trading platform

In Tuesday morning trading, a single bitcoin

BTCUSD, +0.86%

was changing hands at $6,517.06, up 0.8% since Monday at 5 p.m. Eastern Time on the Kraken exchange.

Tether yet to fully recover

The price of Tether continues to trade at a discount around 97 cents on Tuesday, suggesting concerns remain for the embattled stablecoin a day after the price, which is traditionally on par with one U.S. dollar fell below 90 cents.

Furthermore, the price of bitcoin on the Bitfinex exchange, the company that shares common management with Tether, is still trading at a significant premium, around $250 or, 3.8% per coin on Tuesday.

Read: Pressure mounts on Tether as stablecoin proves not so stable

Altcoins creeping higher

The price of coins other than bitcoin, commonly referred to as altcoins, are moving higher in Tuesday trading. Ether,

ETHUSD, +1.47%

 the coin that runs on the ethereum network, was up 1.5% at $204.46, Bitcoin Cash

BCHUSD, +0.81%

 was up 1.2% to $449.60, Litecoin

LTCUSD, +0.90%

 has gained 0.6% to $53.60 and XRP

XRPUSD, +3.64%

is trading at 44 cents, up 3.5%.

In bitcoin futures, the Cboe Global Markets October contract

XBTV8, +1.33%

was trading 1% higher $6,425, while the CME Group October contract

BTCV8, +1.02%

 was up 0.8%% to $6,440.

Read: Dr. Doom says bitcoin represents the ‘mother of all bubbles’

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