Bitcoin (BTC-USD) is rallying after seeing its worst week in months, with shares trading above $8,000 as of Tuesday afternoon. Overall market volatility has the cryptocurrency top of mind for many investors.
“This is an industry that has the velocity of information I’ve never seen before. I’ve been investing in tech for 25 years, and I’ve never seen anything like this,” VC firm Future Perfect founder, Jalak Jobanputra told Yahoo Finance’s YFi AM. “So absorbing all the information, making sense of it, you know, takes some time, and that’s why I think actually the day to day doesn’t matter, that if you’re long bitcoin, you’re long bitcoin. You can speculate on the short term, but it gets harder and harder to get all of the information to do that.”
This week, Bloomberg reported that stablecoin tether (USDT-USD) saw its daily volume surpass bitcoin’s for the first time in April, even though its market capitalization is still significantly smaller than bitcoin’s. Tether’s monthly trading volume is 18% higher than bitcoin’s, according to Bloomberg, which cited data from CoinMarketCap.com
“There have been a lot of questions on whether tether has all the backing that it says it does in terms of U.S. dollars. However, it’s still survived. It’s still become the default stable coin that’s being used to trade in and out of bitcoin,” Jobanputra said. “If people are buying tether that that means it’s good for bitcoin and crypto because it means that people are looking to get into the sector.”
Facebook’s Libra — a cryptocurrency it plans to launch in 2020 — was also in the spotlight this week. CNN reported that it’s facing more regulatory scrutiny over whether its appointed independent body would be able to stay neutral.