Tether Issuance related to 70% of Bitcoin Rallies Stable Coin Wars Heating up for 2020December 22, 2019
Tether Treasure mints $30 M of Fresh USDT. The money will be making it to the market shortly. The news of $30M USDT minted at the treasury will push the price trends in the overall cryptocurrency market upwards. There is a lot of controversy around the relationship between USDT and the Bitcoin market movement.
Whale Alert tweeted: “30,000,000 #USDT (30,093,298 USD) minted at Tether Treasury.”
BITCOIN RALLIES HAPPEN WITH TETHER ISSUANCE
More than 70% of Bitcoin Rallies happen with Tether Issuance. The response in the market is bullish. The market capitalization was stagnating, and the Tether trading volume as well stagnated. Vast amounts of USDT swap to Ethereum; Binance facilitated the token swap.
The USD coin from Coinbase has been making its issuances. About $2.8 million of USDC has is issued. And, $1.5M USDC entered the market in December. The circulating supply of USDC is 50% high, and in just one year, it has become the second-largest stable coin.
Tether probably is experiencing a discomfort seeing the issuance of USDC. Stable coin wars are heating up for 2020. New money is entering the market, and there is a lot of excitement in this regard. While the Tether issuances are moving the market, the long-term consequences cause apprehensions. Of note, the Lawsuits on Tether is not yet over.
BUYING BITCOIN WHEN TETHER MINTED
The idea of buying Bitcoin when Tether minted is fresh continues to stay in investor buying sentiments.
Elias Simos tweeted: “As the year comes to a close, it’s always useful to remember the impact of stable value in the #cryptoasset market. The chart below overlays Tether supply on $BTC returns.
Buying $BTC when Tether expands and selling when it contracts, yielded a 2x return – HODLing yielded par.”
However, several crypto community members are not in agreement with this correlation. Despite all, USDT supply is one of the indicators used by investors to decide whether to HODL or sell. About 22 billion USDT is on the Ethereum Network, and 916 million are on the TRON Network.
Some of the USDT is for cryptocurrency-based lending, and some are locked. However, on the Tether transparency report, the entire supply of USDT is higher than reported. There are more than 4.7 billion of coins available.
The tokens spread through networks. Nearly 1.55 million USDT stays on the Bitcoin network, and more than 5 million coins minted on EOS. The wallets are harder to track. The influence of the futures market is one of the causes of bitcoin prices.