Biggest Crypto Test Is Coming, Says Analyst Tom Busby
High-profile trader Tom Busby from CryptoBusy unveils that Bitcoin and Altcoins are gearing up for a huge test that could shake the crypto landscape for the remainder of the year.
As Busby says, the biggest ignition for the upcoming test in the crypto market relates to the recent news of Tether’s market capitalization crossing $64 billion for the first time in history.
Tether assists crypto traders and investors cut through the hassle of transferring their digital asset sale proceeds to a bank account. The company’s business model has secured itself in the crypto industry that trades between Bitcoin (BTC) and USDT are typically twice as frequent as trades between Bitcoin and the U.S. dollar.
According to the trader, the rise in market capitalization of Tether implies growth in crypto demand:
“A rising USDT market cap indicates that traders and investors may want to purchase the stablecoin and deploy it to purchase digital assets such as Bitcoin and Ether (ETH) or put them into yield farming contracts to earn annualized returns.”
He also says that a rising Tether issuance rate typically coincides with spikes in the Bitcoin market. For instance, the total market cap of USDT was around $4 billion in March 2020 but rose to over $61 billion in May 2021. The same period witnessed Bitcoin rising from below $4,000 to almost $65,000.
He adds that the period when Bitcoin corrected from $65,000 to $30,000 also coincided with a flat Tether market cap.
“That is why I believe this over-printing of the world’s currencies may lead to promising futures for Bitcoin. I foresee Tether continuing to virtually ‘print’ more and more Tether as the crypto industry continues to grow and a potential market boom that may follow in the sessions ahead,” the crypto KOL says.