- Tether’s Stablecoin Supply Makes Room for Bitcoin Bulls
- Tether’s market cap has skyrocketed since March this year
- Investor waiting to invest in the space have made USDT demand rise
Tether (USDT) News Today – before the number one digital currency by market cap, Bitcoin moved past the critical $9,000 mark, Tether’s stablecoin, USDT, has seen its stock rise. The coin has seen an uptick in its issuance. There is data that suggests that investors have now turned to USDT in preparation for any further price appreciations in the cryptocurrency market.
Tether’s overall market cap over the past two months has risen by $3.6 billion. This figure is reportedly more than the sum issued between 2015 and mid-2019. Now that the crypto market is gaining momentum, investors might be buying more of Tether’s USDT stablecoin to trade for their Bitcoin holdings.
Buying Bitcoin with USDT
The current rise of stablecoins has made investing in digital currencies easier. Investors and traders do not need to waste their time in converting fiat to cryptocurrency. Instead, they can hold their funds in stablecoins which mimic the actual price of fiat. Since the digital currency market hit bottom on March 12, 2020, the total sum of Tether’s USDT, has almost doubled from $4.2 billion to its current figure of $7.8 billion. This is an 85% increase.
Tether’s overall market capitalization has been moving up for a month now, and the price of Bitcoin has moved alongside it. The recent market demand for Tether’s USDT means it remains one of the most trusted, liquid, and popular stablecoins.
Approaching Bitcoin Halving Means a Bull Rally Lies in Wait
With Bitcoin’s halving event is coming up in 12 days, bullish sentiment is beginning to kick in. This has caused the fear and greed index to double since last week. As crypto prices climb higher, FOMO (the fear of missing out on BTC’s price appreciation) is starting to take shape. Large investors might be pushing their reserves to stablecoins so that they can enter the market appropriately. According to Hoegner:
“The reason why there is a fresh inflow of fiat and the demand for stablecoin issuance is that users are looking to purchase digital assets with stablecoins (USDT) as a low-friction on-ramp.”
While different investors implement varying models, one common way to identify a bullish market is if the price of the asset stays above its previous lows and makes new highs. The market structure has reportedly been bearish since June 2019. To reverse the current structure, the BTC price must stay well above the $10,500 mark. If this occurs, there would be a continued rush of funds to the top digital currencies and it would confirm that BTC is long-term bullish.