Bitcoin Traders See $16 Million New Tether (USDT) Pumped Into The Market, Could BTC/USD Hold?
$16 Million New Tether Pumped Into The Market
- New Tether released while BTC jumps above $8,000
- Tether’s demand in China on the rise
- Popular stableocin’s dominance to face threat as the largest crypto exchange to release its own stablecoin
Tether, a popular and controversial stablecoin is releasing $16 million in the cryptocurrency market. The ninth largest digital currency, USDT is trading at $1 USD down 0.24 percent in the past 24 hours.
In the meantime, Bitcoin hits $8,000 level yet again after dropping down below $7,400 on June 4th.
One of the most traded crypto assets, Tether competes with Bitcoin when it comes to trading value. As per the data provided by Coinmarketcap, Bitcoin is currently managing the daily trading volume of $21 billion while USDT is managing over $20 billion.
Tether Demand In China On The Rise
In another instance, the latest Diar report revealed that Tether on-chain transfer to exchange is moving in tandem with the trading volume. As a matter of fact, per on-chain data, Tether movement hitting a new ATH for Q2, 2019. However, the interesting aspect is the volume in or out of Chinese exchanges dwarfing global trading venues.
China’s involvement is integral to the crypto space as evident from Diar’s statement, ‘even a single BTC/USDT trade on unregulated exchanges in China would usurp every major cryptocurrency trading venue in the world.
Massive amounts of funds are being moved to China for the trading purpose that sees a single trade of Tether moved onto Chinese exchanges amounting $215 million in April, three times of Coinbase and on par with Binance, the exchange with real volumes.
Tether demand is on the rise as,
“In the 2018 bear market, Chinese exchanges accounted for 39% of all known on-chain transaction value for Tether. This year to date, the red dragon is responsible for a whopping 60%.”
In the light of the billion in Tethers moved on-chain in China that towers over the US, the report stated the likelihood of Bitwise’s estimate of 95% crypto trading volume being fake is off the mark “possibly by magnitudes.”
Tether Dominance Facing Threat
Tether undoubtedly dominates the stablecoin market but now it needs to be beware as the largest cryptocurrency exchange Binance will be issuing its own stablecoin “in a matter of weeks to a month or two,” revealed Chief Financial Officer Wei Zhou.
The goal is to make stablecoins available for more of the fiat currencies such as the yen and euro.
However, Tether is not concerned yet as Paolo Ardoino, chief technology officer of Bitfinex that shares the same owners with Tether said,
“As the crypto market matures, competition is welcomed to speed up the transition of stablecoins into a wider market.”