Many are wondering whether the currently ongoing recovery in the Crypto-market is only a temporary phenomenon before the next is since the crash in March, downtrend, or whether the worst is already over. On the one hand, the recovery seems to find no end. On the other hand, the correlation between the Bitcoin price and the traditional markets is high. It is hard to imagine that they can recover to the extent of the corona of a crisis so quickly.An answer to the question of where it goes with the Bitcoin price in the future, could well provide an action when Stablecoin Tether (USDT). How the Twitter page announced Whale Alert, were burned 220 million USD to USDT again “”, the were not, however, required for the expected demand. In the past, such Tether “Burns” were an indication that the Bitcoin exchange rate experienced a collapse.
Importance of Tether (USDT) for Bitcoin price increases
The crypto-currency next to Bitcoin in the last few weeks, probably one of the most talked, is the Stablecoin Tether (USDT). This was already always invest with the most important trading pair for many traders and investors in Bitcoin to.The 4. largest Cryptocurrency with a market capitalization of over 6 billion USD recently reaching a balance sheet total of over 7 billion USD. Thus, the Stablecoin holds just 3.4% of the total market capitalization of the entire Crypto-market, which shows that the importance of USDT for Bitcoin increases. In addition, in the past, much has been speculated, whether the surrender of USDT has an influence on the Bitcoin price.Trading on our brokers comparison-winning eToro. You are looking for a reliable and intuitive Broker to trade crypto-currencies, CFDs, shares, Forex, commodities and more? Then let yourself be in our eToro Test in 2019 all of the features explain, what possibilities are given to you here and where is here the Before – and disadvantages are . eToro Test 2019 read now.
220 million USD to burnt USDT bad for Bitcoin exchange rate?
As already mentioned, were now burned 220 million USD in the Form of USDT, that is, from the books of the company Tether deleted. Explanation: under the Burning, or a so-called “Burn” a crypto currency is, of course, is not a physical fire, but merely deleting some data from the Store, which had previously shown this crypto-currency. Now many are wondering what effect this will have on the Bitcoin price.
? ? ? ? ? ? ? ? ? ? 220,000,000 #USDT (220,210,301 USD) burned at Tether TreasuryTx: https://t.co/gH5R6JSiZm— Whale Alert (@whale_alert) April 22, 2020
Paolo Ardoino, the CTO of Tether and Bitfinex, confirmed the “Burn” and stated in a Tweet that the company had reduced the size of the USDT-Treasury””, and added that the verb authorized burnt Coins”, but not output to be” for the market. It had thus acted merely to USDT for the future demand. A direct influence on the Bitcoin price is not so.Nevertheless, it is speculated that through an indirect connection. Zack Voell of block, stream noted that such operations took place to Tether in the past, always for the Bitcoin course, the critical point. 20. February a few weeks before the crash in may, and in November, happened in front of a 35% price decline in BTC Similar.
However, there is no connection?
Also, if there are a lot of examples, which are not a good Omen for the Bitcoin exchange rate, there seems to be no clear connection between USDT and BTC.In an article with the title “stable coins don’t inflate crypto markets”, which was published in the business research blog, VOX, stated Richard K. Lyons, and Ganesh Visawanath-Natraj – from UC Berkeley or the Warwick Business School that Tether and other stable coins to the Bitcoin exchange rate does not by nature affect.In order for Bitcoin Fans could breathe a sigh of relief after the massive Burn-in Tether again. It does not have to come necessarily to a Bitcoin price Crash. However, this fear is still possible. If you place you after extensive private Research in the case of BTC on the market, like we have here is an important tip for you.
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