Is Bitcoin’s Price Surge Legitimate? Kraken CEO says It’s “Huge Retail Demand”
- Tether is not artificially inflating the price of bitcoin, says Jesse Powell, Kraken CEO
- It’s the huge retail demand, thousands of new users that come seeing the price jump
Speaking about Tether's involvement in Bitcoin price surge, Powell explained how historically when we see growth in the supply of Tether, we have seen growth in the supply of US dollars coming in on Kraken and other exchanges have reported the same.
“Tether is a very transparent reflection of what is happening at the banking system with all the exchanges,”
The latest surge in #bitcoin has been accompanied by big volume in #tether. Watch as @krakenfx CEO @jespow details to @OJRenick why the controversy over the stablecoin is much ado about nothing.$BTC $USDT
— TD Ameritrade Network (@TDANetwork) July 1, 2019
It’s Huge Retail Demand, Media Attention & New Users
Whenever Tether has been printed, Powell explained 99 percent of the time tons of new US dollar came to exchanges as well and that’s not represented as Tether on the blockchain.
“Recently, we have had a massive inflow of fiat currency and so I believe the tether prints are the result of new fiat coming in.”
Powell said he doesn’t think Tether is artificially inflating the price of bitcoin. Tether is rather actually a small part of total fiat supply among all exchanges.
Newly printed Tether has been mostly reflective of actual dollars coming into this ecosystem. And as new dollars come in, it drives the price. This further brings new users. Powell pointed out how when people see prices going up 10% in a day, “you can bet all the exchanges are onboarding” fifty hundred thousand new users a day and that is driving up the prices.
It's the “huge retail demand,” he said and the media attention that it gets is behind the surge, not the tether, Powell said.
Will the Kraken Delist Tether Just Like BSV?
Being one of the few exchanges that have a direct exchange of US and Tether, in response to if the inquiries continue against Tether, would it consider taking it off the exchange like Bitcoin SV (BSV), Powell said, New York AG doesn’t see Kraken’s business.
“We keep an eye on what is happening all over the world,”
and if a digital asset turns out to be a scam or one that the exchange doesn’t want to expose to its clients, or if they feel there is no role for them to provide a market for price discovery then Powell said Kraken might delist the asset just like it did in the past with BSV.
Having said that, Powell also said,
“There is a place for even things that are controversial.”
He says it's useful for the market to have that price discovery so that people can price that risk, place their bets. Delisting, he says is removing the people from providing access to put the money where the mouth is, so he says exchanges should be a “neutral platform.”
Bitcoin’s price is $41,275.85 BTC/USD exchange rate today. The real-time BTC market cap of $774.89 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $15.1 Billion and live coin value change of BTC -0.98 in the last 24 hours.