Whale Alert sounds the alarm – is the Bitcoin course exploding?
The Bitcoin (BTC) price is heading for the next all time high and the Stablecoin reserves are reaching new highs. Tether USDT in particular is not coming to rest and is printing enormous amounts of new USDT – what consequences can this have?
Bitfinex and Tether are an inseparable team and for years the crypto stock market and Stablecoin have had a huge impact on the crypto market. USDT comprises an enormous trading volume and even exceeds the daily trading volume of Bitcoin. Tether aims by Bitcoin Revolution to be a safe haven for crypto traders, as the exchange rate of the currency is based on the US dollar. The company behind Tether claims that each USDT token is backed by a US dollar. In recent years, however, controversy has often arisen over whether each USDT token is actually backed by US dollars.
Tether printers run hot – Bitcoin soon over 20,000 US dollars?
Nevertheless, the market capitalisation of the USDT token has developed rapidly since the beginning of 2021:
Market capitalisation USDT vs. Bitcoin exchange rate
From January to December, USDT increased its market capitalization from less than five billion US dollars to more than 20 billion US dollars. Moreover, Tether is the undisputed number one in the stablecoin market and no other US dollar token can hold a candle to USDT.
Currently, Tether printers are running hot and only two days ago, more than 600,000,000 new USDT were minted:
🎾 TETHER PRINTER 🎾
Just printed $600,000,000 USDT!
Total supply: $20,033,536,999
– Stablecoin Printer (@usdcoinprinter) December 1, 2020
As can be seen in the graph of Longhash, in the past a rising number of new USDTs was almost always an indication that the Bitcoin rate is rising. Recent developments at Tether therefore suggest that the newly printed USDT may also be flowing into the crypto market.
The Whale Alert, a bot that specialises in monitoring BTC whale transactions, has been sounding a frequent alarm recently:
🚨 10,000,000 #USDT (10,005,011 USD) transferred from Tether Treasury to unknown wallet
– Whale Alert (@whale_alert) December 2, 2020
Although no one knows exactly where the newly printed USDT will go, there is currently a high probability that the Bitcoin exchange rate will receive a further boost from the new tethers.