Tether continued to mint 220,000,000 USDT, an effort to manipulate the market or a real rise in demand?
Crypto traders are following a big move from Tether (USDT) to see where the crypto and Bitcoin (BTC) markets may head next.
Tether continues to mint an additional 220,000,000 USDT
Today, as the crypto markets turned green, Tether minted 220,000,000 new USDT.
? ? ? ? ? ? ? ? ? ? 100,000,000 #USDT (100,643,713 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) May 7, 2020
? ? ? ? ? ? ? ? ? ? 120,000,000 #USDT (119,766,698 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) May 7, 2020
Tether is designed as a bridge between fiat currency and cryptocurrencies. As a stablecoin pegged to the U.S. dollar, traders often use it to escape crypto market volatility. Tether has been accused of minting USDT to manipulate the market and push prices higher, but the company says it merely creates new crypto assets when there’s a rise in demand.
Also, at this time, the U.S. Treasury recently announced plans to borrow another $ 3 trillion in just three months. U.S. intentions Treasury has worried many people. That’s more than twice what the state borrowed all of last year — for only three months.
That’s more than five times what the U.S. borrowed at the peak of the 2008 financial crisis.
BREAKING NEWS: US Treasury to borrow record $3 trillion in newly printed currency!
This is 5 times of what the US borrowed at the peak of the 2008 financial crisis.
Unbelievable.
— The Moon (@TheMoonCarl) May 5, 2020
From events in traditional finance, one can relate to the cryptocurrency market. Because crypto is also heavily influenced by traditional financial markets. At this point, Tether continues to mint an additional 220,000,000, which means there are two scenarios.
The first scenario is that Tether is trying to manipulate the cryptocurrency market. Because when Tether mints money, Bitcoin’s price goes up again. There was a time when the Bitcoin price increased more than $ 10,000 on exchanges. And this is not just a one-off event. Just like in the traditional financial market, when the Fed continues to print money, inflation will take place and affect pretty much every aspect. Therefore, crypto is no exception. The more USDT, the more inflation will occur, the more speculation on Bitcoin will cause the Bitcoin price to be pushed up beyond reality. Similar to the 2017 crypto bubble.
Bitcoin prices have actually risen to more than $ 10,000 at some time.
The second scenario is Tether minting money because of the real needs of crypto users. This shows that cryptocurrencies are getting more and more acceptance. The newly added 220,000,000 USDT is probably a large volume purchase by an organization or a large investor. And when this USDT is going to move in the exchange for buying Bitcoin, the price goes up.
However, that is only the theory, and the true purpose of Tether when minting the money is what we do not know. But, we keep waiting to see how the market will move in the next few days.
Read more:
- Bitcoin Halving: Mati Greenspan Says His Account Is Now 100% Allocated To Bitcoin
- China Accounts For 65% Of The World’s Hashrate, About Half Of The Country’s Hash Rate Is Produced In Autonomous Xinjiang