Bitcoin price has finally surged past the $10,000 mark. The coin made this move in a jaw-dropping price action this past Friday. The leading asset class rallied past a significant resistance position at $9,000+ before it went on to surpass the $10,000 mark. Now, it has reached as high as $11,200 as of Saturday morning. This is a tremendous opportunity for the digital asset market to rally as BTC price always determine the nature of price movements.
Tether (USDT) Price Today – USDT / USD
FOMO Has Kicked Off
With this move by the leading digital asset, a number of prominent crypto commentators including Fundstrats Thomas Lee, have suggested that the concept known as “FOMO” (or fear of missing out) is going to return to the crypto space. As Lee puts it on Twitter, when BTC hits $10,000, FOMO will be present among those who gloated about BTC’s 90% crash during the bear season. Those who proclaimed Bitcoin dead will feel FOMO.
Indeed, FOMO has reportedly materialized in crypto markets after BTC passed the $10,000 mark this Friday. As confirmed by ViewBase, a crypto analytics service, there has been “enormous inflows of stablecoins into digital asset exchanges.” More importantly, one hour after Bitcoin moved past the $10,000 mark, about $25 million worth of USD-backed coins found their way into cryptocurrency exchanges.
It is important to indicate that such large inflow of funds directly suggests that investors, and presumably large holders of crypto, are looking to reallocate enormous amounts of capital into the space as a result of Bitcoin’s push past $10,000. Although, it is still unclear regarding the extent stablecoin-to-BTC purchases have affected the entire crypto market, it isn’t hurting at all. All in all, everything is going as it should.
Tether Flooded Markets With Millions of USDT
As the majority of stablecoins have now flooded into exchanges, Tether, the network behind the USDT digital token, has begun to issue larger amounts of its crypto. This, barring reports that Tether is issuing users unbacked coins, suggests that the network or its partners, either Bitfinex or regular investors, have started to siphon money into the stablecoin space. At least in anticipation of the expected increase in the demand for USDT and Bitcoin.
The total number of USDT currently in circulation has hit $3.8 billion which is reportedly an all-time high for the network. Of course, this is a clear sign of the growing investor interest in the coin. In related reports, USDT has started to break its peg against the USD, after starting to trade at $0.994. This is as a result of the network’s high sell-side volumes. It also implies that investors may have been dumping the stablecoin for better options like Bitcoin, and Ethereum, as well as other large digital assets.
A Future Rally is Imminent For Tether
A section of analysts has gone as far as declaring that when Tether issues large amounts of its USDT token, it will be a sign for a further rally in the future. More specifically, Filb Filb a crypto expert, noted that Tether’s market cap has reported movements that have been predicted based on moves in BTC.
Hence, in the last few months, the number of USDT that has been flooded into Bitcoin markets have run into millions. This seemingly precedes moves upwards.