Cryptocurrency

Just $ 120 million in Tether were geminted – and this is good for Bitcoin

While the size of the Bitcoin Community has shrunk in the last few months, has a part of the crypto-industrial steady growth: the market capitalization of Tethers USDT, the leading Dollar Stablecoin.
The crypto-currency, now the fourth-largest by market capitalisation, has responded in recent weeks on rising demand, with the Twitter Account Whale Alert followed a series of transactions that indicate a high demand for USDT.
Just recently, it was reported that more Tether were minted in the value of $ 120 million. That, analysts say, could be for Bitcoin and the Rest of the crypto market is a big step forward.

Tethers market capitalization at $ 7 billion BTC will benefit

Data of the crypto analysis-Trackers Skew.com according to the in circulation USDT-the amount exceeded recently, seven billion, or about 3.4% of the total market capitalization of the crypto market, according to CoinMarketCap. This follows on from a series of 120-million-Dollar-prints like the one just mentioned.
Analysts believe that this Trend is positive for the crypto-market – and that he could actually explain a large part of bitcoin’s recovery from the March lows at $ 3,700 a at the current price.
Charles Edwards, a Digital Asset Manager, wrote in January that “the major changes in Tether have determined the price of Bitcoin in the last 1.5 years”.
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In front of the almost 50-percent crash in November 2018, when the Bitcoin of $ 6,000 to 3.150 Dollar is crashed, sank in the circulation USDT-amount to hundreds of millions. Even before the largest part of the crypto rally in the year 2019, hundreds of millions of USDT have been printed.
This makes fundamental sense. Ryan Selkis of the Messari declared that the now existing stable coins to the value of $ 3 billion, which are traded on stock exchanges, the chances are good for a crypto-Boom – in particular, in the case of Bitcoin, because BTC is the largest market for USDT.
Su Zhu, CIO and CEO of the Hedge Fund’s “Three Arrows Capital”, summarised this Thesis well, as he is in the 1. Quarter 2019 – a time, in the stable coins to a value of only 2 billion dollars in Dollar Coins were bound to the following comment made:

“An estimated 2 billion dollars in cash in crypto-Fund/Holdcos. A further $2 billion+ in stable coins and a further $2 billion in Exchange/silver gate/Signature. […] Imagine, we need new money [Bitcoin] to come to $10,000.“

The alternative theory

Yes, the growth of the Stablecoin-demand seems bull to be. Some do not believe, however, that much of the recent growth depends on a growing inclination to Bitcoin purchase, but rather with macro-economic Trends.
More specifically, it has been suggested that even investors who are not in the crypto-space, in turn, due to a global Dollar shortage to USDT to make transactions.
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About the author

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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