A chart of the Bitcoin price movements shows that, in retrospect, the appreciation periods of time with the active, coordinated embossing Tether (USDT) match.
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Bitcoin-cycles coinciding with USDT-pressure
In the retro perspective, it is clear that the upward movements of the Bitcoin price with the printing of the Tether (USDT) coincide. Particularly significantly, the correlation was 2017, as the supply of USDT grew for the first time in the millions.
However, there were 2018, different periods, corresponding to the effect of USDT actions.
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Tether due to a fake BTC-demand in criticism
The crypto Community is still divided on the explanation for this connection. One of the explanations says that Tether, Inc. the pressure of USDT coordinated and thus increase the value of trigger cycles.
The theory depends on the observation that round sums of USDT will be transferred, while the Bitcoin prices continue to fall, which leads to a further recovery. Tether the trailer to see the Coin as an important financial innovation, which reflects the enthusiasm for Bitcoin again – that’s why the inflated offer.
In any case, the observation of the USDT offer is one of the signs of whether you hodeln before the exchange rate losses, or to sell. Currently, the USDT-range is stagnant, while the Coins will be redistributed to a handful of networks.
About 2.2 billion USDT are in the Ethereum network, with a further 916 million, based on TRON (TRX). The exact range of USDT is reported as constant, although it is now more difficult to appreciate the the circulation of Coins and to keep track of.
A part of the USDT will also be blocked for crypto-based loans and used. But there are still Transfers between the Tether’s Treasury and Bitfinex, albeit on a smaller scale.
? ? ? ? ? 40,000,000 #USDT (40,175,942 USD) minted at Tether TreasuryTx: https://t.co/p3XFG8SLBo— Whale Alert (@whale_alert) December 11, 2019
The Tether transparency report also shows that the entire range of USDT is higher than on CoinMarketCap reported. More than 4.7 billion Coins are now available, which are distributed over a handful of networks.
Approximately 1.55 million USDT remain in the Bitcoin network, and about 5 million Coins were minted on EOS. This time USDT is spread wider among the exchanges and Wallets are still harder to track.
Overall, the last quarter of 2019 not recorded a slight growth of the USDT offer, although the Bitcoin prices reacted immediately to the increased liquidity.
One of the reasons for the failures of the Bitcoin prices, the impact of the futures markets is. So far, only OKEx offers USDT-settled Futures, and the Stablecoin has no influence on this type of pricing.