Reportedly, Chinese retail buyers are buying the dip by making use of the stablecoin Tether.  The demand for Tether (USDT) from Chinese retail traders have been greatly overlooked.

It just looks like the Chinese traders were motivated by the price drop of Bitcoin (BTC) and this led to a new demand for Bitcoin.  There was little importance given for very long to the “tether premium” – or the difference between the prices quoted in Yuan on the dollar-linked stablecoin Tether (USDT) by over-the-counter cryptocurrency traders, and the implied Yuan-denominated price for Tether based on the prevailing rate in global markets.

It is important to note that under normal trading conditions, the value of Tether would depreciate versus Yuan.  This happens because the Chinese currency has been appreciating versus the dollar in foreign exchange markets. This trend changed in the past week.  There has been an increased demand from the traders from China and “Tether denominated in Chinese Yuan has traded at a premium since last week.”

Chinese traders use the stable coin as the on ramp to the crypto markets.  This is because, the practice of trading directly using government-issued currencies is banned in China.  It just looks like several Chinese investors are entering the market and this trend has been increased due to the influx of several U.S.-based institutional investors.

It just looks like several Chinese investors who have very little exposure to Bitcoin are now looking for newer channels to buy bitcoin. And, they are able to see that buying bitcoin through USDT is the most direct channel and this has indeed led to an increased demand for USDT.

Several Chinese traders are now buying the Tether to buy the dip.

Tether recently tweeted:  Tether now has a $35B market cap.  Tether added an additional $14B to its market cap since January 2021. This is more than all other stablecoins current market caps combined.

While so many things are happening, a beginner asked:  Tether is a stable coin indexed to the dollar, so even if its volume increases, its price cannot change, right?

Someone who profited stated, Wow! I bought USDT at $0.995 and I’m already in profits at $1.003.

Reportedly, as part of the settlement, Bitfinex and Tether have agreed to pay $18.5 million in penalties to the state of New York, according to a statement from New York Attorney General Letitia James.

Thus, Crypto firms Bitfinex and Tether are settling with the New York Attorney General’s (NYAG’s) office, ending a legal dispute that began in mid-2019.