Bitcoin Price Recovers to $8,200 as Tether Hack Makes Markets Volatile

The bitcoin price has recovered above $8,200 after careening significantly in the wake of the Tether hack.

Bitcoin Price Plunges & Recovers in Wake of Tether Hack

As CCN reported, The bitcoin price endured a temporary correction on Monday following a report that Tether, a widely-used crypto token purportedly pegged to the U.S. dollar, had been hacked. According to an announcement from the Tether development team, a hacker infiltrated the Tether treasury wallet and stole approximately $31 million in USDT.

The news of the hack, which surfaced early Monday morning, led to intense volatility within the markets due to the wide proliferation of USDT usage as a substitute for fiat USD on cryptocurrency exchanges. On Bitfinex, the bitcoin price plunged from $8,285 to $7,755 in minutes, and the ripple effect caused the total cryptocurrency market cap to temporarily shed more than $10 billion.

bitcoin price
BTC Price Chart | Source: BitcoinWisdom

However, the bitcoin price quickly found a footing, and over the next few hours, it climbed back near its pre-dip level. At the time of writing, the bitcoin price was trading at $8,259 on Bitfinex, placing it within $60 of the all-time high it set yesterday.

Dash Leads the Altcoin Pack

The altcoins markets were a mixed bag for investors on Tuesday, but the total altcoin market cap ultimately grew by about $1 billion despite Tether-linked volatility.

bitcoin price
Source: CoinMarketCap

The ethereum price posted a three percent advance, enabling it to climb to $368 and a $35.3 billion market cap. Ethereum is up more than 11 percent for the week and has apparently put concerns over the recent $150 million Parity wallet bug in its rear-view mirror.

ethereum price
Ethereum Price Chart | Source: CoinMarketCap

Bitcoin cash grew by about one-half of one percent, bringing its market cap within $30 million of the $20 billion mark. Ripple and litecoin, meanwhile, posted minor declines of less than one percent.

Dash returned the most impressive performance among top 10 cryptocurrencies. The dash price briefly rose to $514 -- a new all-time high -- before settling down to a present value of $493. This represents a 24-hour gain of 11 percent and places dash just $55 million behind litecoin in the market cap rankings.

dash price
Dash Price | Source: CoinMarketCap

The IOTA price declined almost eight percent, tapping the brakes on its weeklong advance. NEO, likewise, plunged by 13% after a rumored announcement did not live up to investor expectations.

neo price
NEO Price Chart | Source: CoinMarketCap

Ninth-ranked monero increased by three percent to $137, and NEM declined by one percent to round out the top 10.

Featured image from Shutterstock.

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About the author

Josiah Wilmoth
Josiah Wilmoth

Josiah is the US Editor at CCN, where he focuses on financial markets and cryptocurrencies. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He holds bitcoin, but does not engage in day trading. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.