Just before the bull run? Another 20 million tether (USDT) has just been minted
Just before the bull run? Another 20 million tether (USDT) has just been minted
Tether Treasury has just minted USD 20 million. Only 30 million USDT were minted last week.
Tether Treasury increased its USDT issues at the close of trading in 2019. The largest stablecoin has just spent another USD 20,000,000 that will be launched soon.
First 30 million, then 20 million
Whale Alert (@whale_alert) reported on the new USDT today.
💵 💵 20,000,000 #USDT (19,945,873 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) December 27, 2019
There was already a significant increase in USDT emissions last week: On December 20, Tether Treasury issued another USD 30 million.
Although USDT is controversial, Bitcoin’s upward movements have been strongly correlated with USDT emissions. In fact, 70% of Bitcoin rallies followed new USDT issues that came on the market.
So the correlation is pretty strong, which makes a short-term rally likely. At the time of writing, Bitcoin is relatively stable at $ 7,300. BTC has been consistently above the $ 7,000 mark last week.
How long can this go on?
Although new issues of USDT often create optimism about future market movements, some are skeptical about how long this can go on.
USDT has been criticized for a long time because nobody knows how much of the USD reserves are actually attributable to stablecoin emissions. Earlier, Tether’s co-founder said that it wasn’t “really important” if USDT was supported by the same amount of dollars – a serious alarm.
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— Whalefool (@Whalefools) December 27, 2019
a picture with paolo in 2020 pic.twitter.com/wJ4n3Zzdi4
— Crypto Japan (@SirbuOffice) December 27, 2019
Although Tether’s circulating offer remained relatively stable for the second half of 2019, it spent another USD 50 million last week alone. Some evidence suggests that stablecoin is feeling pressure from its rivals.
However, it still remains the most traded cryptocurrency in the entire market. Since this summer, Tether (USDT) has consistently had higher trading volumes than Bitcoin.
Based on last week, it appears that the USDT emission rate will not slow down significantly in 2020. It remains to be seen whether that will one day catch up with Tether Treasury and whether they will be checked accordingly.
