Bitcoin Price Is Getting Ready For A Big Move; Will Tether’s Printing Cause A BTC Jump
- Tether printing calls for a bigger move
- Using USDT to buy more Bitcoin drives the demand and then the price
- Tether trading volume also sees a spike
After seeing $9,855, Bitcoin went green yet again, going as far as $11,042.
Currently, we are trading around $10,700, up 5.60 percent in the past 24 hours but on a weak volume. As per Messari’s Real 10 volume, in the past 24 hours, the Bitcoin trading volume recorded is $1.88 billion, lower than yesterday’s $2 billion.
Bitcoin was expected to take a bigger drop, however, after Treasury Secretary Steven Mnuchin’s remarks on Bitcoin and cryptocurrencies, the prices went up.
But we could see even a bigger surge here.
Tether Printing Calls For A Bigger Move
Popular and controversial stablecoin, Tether has been the driving factor behind Bitcoin price, per many theories. Though Jesse Powell, the CEO of cryptocurrency exchange Kraken refuted tether manipulating the price narrative, we have seen the direct connection between Tether market cap and Bitcoin supply.
Bitcoin price has taken a drop but with Tether being printed, this inflow of money could drive Bitcoin prices up yet again.
Tether is a USD backed stablecoin and several exchanges like Kraken itself doesn't have fiat trading pairs. These exchanges use Tether (USDT) as a proxy for USD and people trade between BTC and USDT.
Using USDT To Buy More Bitcoin Drives The Demand And Then The Price
We have seen how in China people purchase BTC through USDT that has its price trading at a premium. Last month, a Diar report highlighted how China has been driving demand for the USDT. In 2019, Chinese exchanges accounted for more than 60 percent of the total Tether volume which also has been mostly legitimate.
This demand for USDT was because of people getting their money out of Hong Kong and China on fears on yuan volatility.
So, whenever Tether is printed, people use USDT to acquire more Bitcoin. This push on Bitcoin from the buy side indicates an increase in demand that drives the price of Bitcoin.
Tether Trading Volume Also Sees A Spike
Interestingly, the trading volume of Tether is also rising significantly. According to Coinmarketcap, Tether is currently managing the daily trading volume of $23 billion, the highest figure, more so than Bitcoin’s $21.9 billion, at the time of writing.
Back in December 2017, during the bull run, at 27th spot Tether registered the trading volume of $1.64 billion. In December 2018, when BTC hits its yearly low, ranked 4th, Tether registered $2.3 billion in trading volume.
Currently at 6th spot, $3.2 million is the volume traded in USDT on the ten exchanges with real volume, however, these exchanges don’t involve the Asian crypto platforms like Huobi.
So, as the supply and trading volume of Tether point towards a spike, it’s time to be bullish once again in the short term.