Tether (USDT) slumped to 97 cents in Asian hours, losing its parity with the US dollar at the time of writing. On Coinbase, it fell as low as 96 cents.
Separately, Bitcoin (BTC) lost $27,000 support and fell to $25,400, a level previously reached in December 2020.
Traders sold USDT for U.S. dollars amid poor sentiment for stablecoins in the crypto community. TerraUSD (UST) fell from its targeted $1 level to as low as 22 cents earlier this week, while Waves' stablecoin USDN showed signs of weakness on Wednesday evening.
The selloff came despite Tether CTO Paolo Ardoino confirming on Twitter today that Tether continues to honor "USDt redemptions at $1" via its website.