Strange correlation: buying Bitcoin is worth it when Tether prints Tether

A chart of Bitcoin price movements shows that retrospectively, revaluation periods coincide with the active, coordinated coinage of Tether (USDT).


Bitcoin cycles coincide with USDT pressure

In retrospect, it becomes clear that the upward movement in Bitcoin price coincides with the pressure from Tether (USDT). The correlation was particularly clear in 2017 when the supply of USDT grew for the first time in the millions.

However, there were also different periods in 2018 that corresponded to the impact of USDT actions.


Tether criticized for counterfeit BTC demand

The crypto community is still divided over the explanation for this connection. One of the statements states that Tether, Inc. coordinates the pressure from USDT and triggers cycles of appreciation.

The theory depends on the observation that round sums of USDT are being transferred as bitcoin prices fall, leading to a further recovery. Tether fans see the coin as an important financial innovation that reflects the enthusiasm for Bitcoin – hence the inflated offer.

In any case, watching the USDT offer is one of the signs of whether you should “hodel” or sell before the price drops. USDT is currently stagnant as coins are redistributed across a handful of networks.

Over $ 2.2 billion is in the Ethereum network, and another $ 916 million is based on TRON (TRX). The exact supply of USDT is reported to be constant, although it is now more difficult to estimate and track the coins in circulation.

Part of the USDT is also used for crypto-based loans and remains blocked. But there are still transfers between Tether Treasury and Bitfinex – albeit on a smaller scale.

The Tether transparency report also shows that the total supply of USDT is higher than reported on CoinMarketCap. More than 4.7 billion coins are now available, which are distributed over a handful of networks.

About $ 1.55 million remains in the Bitcoin network, and over 5 million coins have been minted on EOS. This time USDT is also more widely spread among the exchanges and the wallets continue to be more difficult to track.

Overall, the last quarter of 2019 saw slight growth in USDT supply, although Bitcoin prices did not immediately respond to the increased liquidity.

One of the reasons for the misconduct of bitcoin prices is the influence of the futures markets. So far, only OKEx offers USDT-settled futures, and the stablecoin has no influence on this type of pricing.