Tether price action has been weak since July 2019 and it is not a good sign for Bitcoin

By Selena 01/2/20 11:31 AM

Since Tether (USDT) moved to other networks besides the Omni protocol, the coin has changed dramatically. In particular, Tether seems to be increasing the minting of USDT through the Ethereum Blockchain and Blockchain Tron. The supply of USDT on Ethereum is currently at more than 2.2 billion tokens, while the equivalent of Omni is about 1.5 billion. Not to mention 900 million USDT on Tron Blockchain. However, Tether has long been controversial and shows no signs of slowing money minting.

USDT’s market cap increased over $2 billion in 2019, and the company minted a reported 1.7 billion coins | Source: CoinMarketCap

Correlation between Tether and Bitcoin

The expansion of Tether to other networks except Omni is interlaced as a testament to the popularity of USDT stablecoins. However, Tether still faces a lot of additional transparency. From alleged market manipulation involving Bitfinex to Tether’s continuous money-minting cases. Tether has provided significant liquidity to markets but is also a key player in the scheme to manipulate prices and create fake Bitcoin demand.

Market analyst Josh Olszewicz emphasized the correlation and remains bearish on BTC as follows:

i really cant get bullish again until $USDT > $1

since July, $USDT < $1 hasn’t been bullish pic.twitter.com/B91o7art5J

— Josh Olszewicz (@CarpeNoctom) January 1, 2020

Tether’s market performance also has an impact on Bitcoin price. There seems to be a correlation between the expansion – narrowing the supply of USDT and the price movement of Bitcoin.

As the year comes to a close, it’s always useful to remember the impact of stable value in the #cryptoasset market.

The chart below overlays Tether supply on $BTC returns.

Buying $BTC when Tether expands and selling when it contracts, yielded a 2x return – HODLing yielded par. pic.twitter.com/AqUwf3LrPR

— Elias Simos (@eliasimos) December 12, 2019

On December 28, 2019, Tether was discovered to mint an additional $ 20 million. Previously, Tether allowed 40 million US dollars to enter the market on December 11. Prior it was 30 million dollars on December 20.

According to the Tether Transparency Report, the total USDT supply is $ 4.8 billion, higher than the reports of analytics sites like Coinmarketcap.com.

There has also been a lot of transition from OMNI to the Ethereum network, and Tron will also affect the operation on the Bitcoin chain. There is more than 2 billion USDT in ERC-20, and nearly one billion is equivalent to Tron.

Bitcoin and Tether have a clear correlation so that increased Treasury activity can regain tokens on its pegging level that will raise prices for BTC.

Tether has minted too much USDT

In October 2019, USDT supply on the Tron network accounted for nearly 12%. As of January 2020, the total supply of Tron USDT is 916,550,610,601. If the total USDT supply on all networks is 4,207,771,504, that means TRC20 currently accounts for nearly 22% of the total supply.

Tron USDT now almost 22% of the total supply

In the summer of 2019, when the ERC-20 Tether transactions overturned the number of Omni USDT transactions, the cryptocurrency market was shocked. The amount of USDT on Omni at that time was 2.5 billion, which dropped to only 1.5 billion at press time. Meanwhile, the Ethereun network currently contains more than 2.2 billion USDT.

Top USDT circulating supply holders on the EOS network

The EOS Network is also the home of stablecoins. In particular, Tether accounts for just over 5 million tokens, with Bitfinex’s account holding 88.6% of this supply. Where Tron is concerned, the Binance account is the top owner, and on the ETH network, the top owner is Huobi. USDT is also present on the Algorand blockchain.

Currently, all eyes are on the development of Tether in 2020. The first is the result of various legal battles, swapping potential chains and moving USDT to other networks as well as other networks. Long-term dispute disputes about assets can be converted into dollars.