Too Long; Didn't Read
USDT generally trades at a discount to USD when traders perceive Tether/Bitfinex are having issues potentially affecting their solvency and/or the USDT liquidity (i.e. banking issues, see <a href="https://medium.com/@alexkruger/tether-arbitrage-the-dollar-peg-7da405f13ffc" target="_blank">here</a>). During tether driven panics, bitcoin prices twice crashed, and twice spiked.