The price of bitcoin the past few days, very peaceful, in contrast to the decline of the previous week. You can do it even close to stable. Stable voice, in this analysis, we will look at the role of the tether to on bitcoin.
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What is a tether?
Tether is a so-called stablecoin, as a cryptocurrency, which is the exchange rate of the national currency. Tether (USDT) has been pegged to the dollar, and it is widely used on the cryptocurrency exchanges. At the fairs you will see that the trading pair BTC/USDT.
At may be issued by a Tether to the Limited. The idea is that for each of the tether to a dollar in the bank account of the Tether Limited. Tether is also secured by other assets, but it is the site of the Tether to the Limited not have to be very clear about it.
Tether Limited, together with a cryptocurrency exchange Bitfinex, under the umbrella iFinex. The two organizations have been quite controversial in the cryptowereld. This is mainly due to the presumption that the tether has an influence on the bitcoin price.
The more volume in a tether than it is in bitcoin
It now takes something pretty unique with the tether. There are a lot traded in the tether (16.8 billion dollars) in bitcoin (14.2 billion dollars). At an appropriate distance, ethereum, with $ 6.4 billion.
Not only that, but tether is on the fourth place in terms of total market value. Only in bitcoin, ether, and ripple (XRP) is higher.
It’s an assumption, but the volume of the tether, may have something to do with the decline in the price of the previous week. Investors have been spooked by the sudden fall of bitcoin and the altcoins, and their cryptomunten converted to tether to a further loss to be covered.
The bitcoin price is driven by a tether?
It is often written that the tether effect on the market price of bitcoin. And that place is not a crazy idea. In the chart below, you can see the connection. We have a number of tethers in orbit (the blue line) and on the bitcoin exchange rate on the city:
In October, 2018 and burn Tether-Limited to 500 million tokens. A month later, it collapsed, the price of bitcoin on.
Also notable, starting in april of this year, crowds Tether Limited a lot of the tokens with it. During the same period, it increased the bitcoin price of 3.700 euros at the peak of 12.200 euro.
But starting in July, this seems to be a lot weaker. The price of bitcoin has declined from approximately 12,200 to € 7.250 euros, but the total number of tethers in circulation has not changed with it.
If the price of bitcoin is really driven by a tether, it is difficult to say, but the context is quite remarkable.
What is the price of bitcoin go?
We can only guess at the amount at which, in the future it will be reprinted, but this one is not the wiser of it. Therefore, we focus now back on the market price of bitcoin. Where do we go from here?
For a change, we can look at the bitcoin price in the long run. In the short term, it is hard to say what the price is bewegen.De the graph below outlines the share price at the end of 2012 through to the present day. Our analyst Adger Jooren, explains the situation on the basis of Fibonacci’s sequence:
“You can see that we are starting at the bottom, in mid-december, 2018 shall be increased to the 61% Fibonacci level (red line on the chart).
In the next few months, the bitcoin price is moving it is at 23.6 per cent and 38 per cent Fibonacci level (green arrow). That is the level it is now, between 6.400 euro and of 8.600 euros. In the past, the price would be much more of this zone to fail.
This can be a good foundation for bitcoin to continue to rise.”