Another $20M USDT will be entering the market — which means that we could possibly see an uptick in Bitcoin’s price to follow.
Whale Alert (@whale_alert) has just notified followers of yet another $20M USDT recently minted at Tether Treasury. The USDT injection into the market comes at a time when Bitcoin has been holding steady around the $8,000 price point. The leading cryptocurrency has shown resilience at this level despite talks of a ‘death cross‘ and further breakdowns.
20,000,000 #USDT (19,952,765 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) October 7, 2019
The move comes after separate $20M USDT was minted just six days ago. However dubiously, it seems that Tether is interested in keeping Bitcoin’s price afloat despite being bound up in controversy. The stablecoin issuer is currently facing a serious case pursued by the New York Attorney General. The decision has been postponed and pending for some time.
Regardless, one thing seems clear — new minting of USDT seems to directly correlate with an increase in Bitcoin’s price points. In fact, the 30-day moving average of Tether’s velocity (volume divided by market capitalization) has been found to mirror Bitcoin’s price almost too well. For example, USDT issuances slowed down in mid-July which was around the time Bitcoin’s price peaked this year.
With another $20M USDT entering the market now, we can likely expect another bump in Bitcoin’s price. However, it’s unclear how long this game of musical chairs will go on — or whether USDT will ever be properly audited. It’s a concern that has been the backdrop of the cryptocurrency space for some time.
However, with USDT now leading the entire market in trading volume, it seems that the critics have not stopped this stablecoin from dominating the industry. If market history repeats itself, it usually takes 30 days or so for USDT minting to be really be felt in the market.
Do you find that USDT minting generally correlates with an uptick in Bitcoin’s price? Let us know your thoughts below in the comments.