Crypto executive explains the issue with Tether
Tether’s USDT stablecoin volume has risen remarkably
Over-the-counter traders have helped push Tether’s volume
Cryptocurrency News Today – despite a recent strong downturn for cryptos, which included Bitcoin’s 50% decline on March 12, the sum of Tether’s USDT stablecoin (volume) in existence has since exploded. The report says the market cap of the asset has now surpassed $6 billion. This means a total of $1 billion has added to this metric over the last two weeks. In a $200 billion industry, such inflows can be termed as dramatic. Besides, alternative stablecoins Paxos Dollar, USD Coin, and Binance USD pairs have posted dozens of millions. The question is what is driving the demand for stablecoins?
What Pushed Tether’s Market Cap Higher?
Sam Bankman-Fried, the CEO of FTX and Alameda, recently talked about Tether. Here are the factors he suggested:
- Over-the-counter traders (from Asia) are acquiring USDT. It is well known that Chinese traders utilize Tether because they do not have full access to the crypto markets. Some see USDT as a good way to send money globally even if you don’t want to deal with Bitcoin.
- People are selling off their Bitcoins for USDT hedges.
- People are selling off their Bitcoin for USDT to reduce their risk levels.
According to the Commentator, these factors are driving up the value of USDT and its supply.
What’s Next for BTC?
Even though most of Tether demands have risen due to sell-side demand instead of investors trying to purchase BTC with Tether, the strong rise in blockchain dollars may boost the market value of the crypto in the future. Charles Edwards, a cryptocurrency manager, cited in January that big changes in the market cap of Tether have made Bitcoin’s price in the last one and a half years. This was proven true when the price of BTC rallied to as high as $10,500 in mid-February after the pseudo-indicator spotted a month before.
Before the 50% crash in November 2018, the sum of USDT in circulation fell by hundreds of millions. Additionally, before most of 2019’s 330% rally became the printing of hundreds of millions USD worth of the coins. This record-level of USDT printing currently happening would suggest that the price of Bitcoin will soon see a record rally. This makes sense fundamentally although there are some details regarding how you can deposit the USD and receive USDT in return. Introducing fiat into the industry via stablecoins should act as a catalyst for BTC’s growth when holders of USDT sell their tokens for BTC or any other digital currency.
Article Produced By
Heiko Closhen, Entrepreneur
Litecoin price to see losses before posting gains
Litecoin price in a make-or-break position
Charlie Lee to shift focus to crypto payments and privacy
Litecoin news today – In a new day of mostly sideways price action, a few digital assets have reported moderate gains. The tops coin’s like BTC and Litecoin have posted minor rises in value. Bitcoin gained 2% at the time this content was published as the leading cryptocurrency finds its way back to the $6,500 area. Meanwhile, Litecoin has posted slight earnings of under 1% (0.32%). The coin is now changing hands at $39.08.
Litecoin Price Prediction – The Litecoin Price Will Likely Sink Before Posting Gains
Analyst Alex Clay recently analyzed LTC’s price action. The trader believes that earnings for the digital asset are on the cards. According to the analysis the trader Litecoin price is rising in an ascending channel. The coin has fixed itself over the $39.03 area. Hence, he opted to take a bullish stance for the asset before setting price targets of $39.65 and $40.20 for Litecoin. Another analyst is known as Trading Alchemist also noted that Litecoin’s price has done well after moving from its support of $38.50. Although, he does not believe that Litecoin price will see much gains. Instead, the Trading Alchemist feels that Bitcoin’s performance will determine LTC’s next action. We will likely see LTC price test support at $36.50 and $37. Sharing the Trading Alchemist’s pessimistic outlook for the digital asset, analyst the Crpt Teddy Bear has also admitted that the market has been behaving unpredictably in recent times. Hence, until the Litecoin price can manage to break above the $39.67 area, the trader has chosen to go for a bearish position.
Litecoin Price Prediction – The Litecoin Price is At a Make-or-Break Point
The price action that LTC has seen in the last few weeks forced the Bollinger bands to squeeze via the 12-hour chart for LTC/USD. Since squeezes are a sign of strong breakouts, the point between the lower and upper boundaries is a no-trade zone. The support and resistance sit at $36 and $40. The outlook that Litecoin price presents is well represented in the 4-hour chart for the coin. At this time, a symmetrical triangle seems to be developing. There is a technical pattern that reveals indecision among the market’s participants before a coin’s price is forced to move positively or negatively. In other reports, during a recent episode of Cred’s Meet Our Partners, Charlie Lee, the founder of Litecoin said he plans to make LTC a fully-fledged currency. Lee explained, that the goal is to ensure that Litecoin is usable for our day-to-day transactions.
Article Produced By
Heiko Closhen, Entrepreneur