The Stablecoin Tether is praised by some and criticized by others. He is also said to have a strong influence on the Bitcoin price. Our friend, the Whale Alert, was always attentive and was able to observe how the Tether Treasury printed again large sums of money to Tether. In the past, such movements in the case of Tether have led to price movements.We want to see, therefore, what are the potential effects of the Tether pressure on the Bitcoin price may have? As always, the message is for the exchange of information with the reader, and this is not a recommendation for action.
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Price is determined Tether with Bitcoin?
In the past, it was discussed again about the connection between the US Dollar Tether (USDT), and Bitcoin. A lot of people in the Crypto-Community to see a strong correlation between the two digital Assets. Again and again it was striking that the price of Bitcoin (sometimes greatly) increase, if new USDT were printed or were there large movements.Tether is in contrast to Bitcoin not decentralized, but a Central crypto-currency because it is issued by the company Tether Limited. Precisely because of the correlation of the two Assets, and the centrality of USDT, the company Tether Limited is said to have Often the function of a Central Bank for Bitcoin. In the case of Fiat currencies, banks determine the Happen all around the currency, such as money supply and, accordingly, the rate of inflation and exchange rates to other currencies.You have to read everything and want to still not miss anything? Then sign up now for our weekly Newsletter and be always Up-to-date. Get easy access to all relevant News about Bitcoin & Crypto, Blockchain, Meetups, and news within our Community by E-Mail – summarized and clear. Subscribe to the Newsletter now.Price influenced by the company behind USDT deliberately the Bitcoin? Say exactly the can. However, it is probably the most likely explanation for the strong correlation between USDT and Bitcoin, a other. The two Coins together form the trading pair with the highest trading volume for Bitcoin. Accordingly, each day is transferred a lot of money between the Stablecoin and Bitcoin, and a strong correlation can not be prevented.
Tether Whale spotted – Bitcoin price on the rise?
Yesterday Whale Alert reported again about the great movements of the Tether. So 7 million USDT to have been sent by the Tether’s Treasury on an unknown external Wallet.
7,000,000 #USDT (7,014,281 USD) transferred from Tether Treasury to unknown walletTx: https://t.co/THhkneSMcR— Whale Alert (@whale_alert) September 2, 2019
Only an hour later, Whale Alert reported on the new printing of 10 million USDT.
? ? 10,000,000 #USDT (10,031,651 USD) minted at Tether TreasuryTx: https://t.co/d6H9T1Vmbq— Whale Alert (@whale_alert) September 2, 2019
Price of Tether pressure to Changes in Bitcoin?
The two messages from Whale Alert, together with the observations in the past suggest that the rate of Bitcoin will not remain unaffected. A possible scenario would be that the whale is trying to keep the price of Bitcoin be above a certain Level. It is also possible that someone simply wants to buy the next Dip of Bitcoin.Interestingly, the movements were spotted at USDT then that the crypto-exchange Bitfinex due to maintenance work, was for a few hours. During this period, all accounts were frozen on Bitfinex.What is the meaning of the movements to Tether for Bitcoin, it will be interesting to see what happens this time.What do you think about the news of the Tether? We are on the verge of a new Pump, or someone wants to cause a Dump? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)