Nearly $500 Million Tether Stablecoin (USDT) Re-Enters the Crypto Market
Half a billion USDT have entered the market since Bitcoin (BTC) and other digital assets fell back in November 2018. According to CoinMarketCap, after the massive drop experienced by virtual currencies in November, the Tether in circulation dropped to 1.7 billion USDT. Now we have more than 2.2 billion USDT.
Tether Also Recovers From The Bear Market
Tether is one of the most popular stablecoins in space. Indeed, it is the largest in terms of trading volume and market capitalization. After the price increase experienced by Bitcoin and other virtual currencies a few days ago, USDT increased its presence in the market and also it's market capitalization.
Zhao Doing, a Bitcoin billionaire and a recognized OTC trader in the country, commented about it:
“Today, we observed that the new circulation of USDT is more than 60 million, which should be the biggest one in the New Year. The increase or decrease in the total amount of USDT represents the increase and decrease of funds in the digital money market, which is closely related to the bulls and bears.”
As Tether reports in its official website, $2.5 billion has been printed by they have not yet been issued and released to the market. As TrustNodes explains, the highest demand seems to be coming from China, where CNY reached 7.08 against the USDT. Meanwhile, each USD can be purchased for 6.7 CNY.
There are other countries that seem to be purchasing USDT as well, including South Africa and Brazil, among others. In many cases, moving funds between boundaries is a difficult and expensive task. With USDT, it is possible not to be exposed to the volatility of traditional virtual currencies and enjoy speed and reliability as well.
Many experts believe that when the supply of USDT increases, it could have a positive effect on Bitcoin because there are more interested users in purchasing the digital asset. It can also have a positive effect in other digital assets as well that have liquid markets with USDT.
Finally, Tether has been involved in many controversies in the last years. These issues are related to the funds managed by the firm and whether it really has the necessary USD to back the issued USDT.