A digital currency analyst on Twitter believes that the recent massive upsurge in the price of Bitcoin (BTC) was triggered by Tether USDT issuances. Bitcoin (BTC) recently experienced a massive upsurge that pushed its value over the $13k level. Bitcoin started this year around the $3k level. However, the digital currency surged to a high of $13,800 in the month of June. The rally in the price of the digital currency started on April 1. The upward trend continued and Bitcoin (BTC) tested its year-to-date high of almost $14k in June.
Tether (USDT) Is the Catalyst for Bitcoin’s Rally, Andrew Rennhack – Cryptocurrency Market Update – Cryptocurrency News Today
Earlier this week, Andrew Rennhack – a digital currency analyst on Twitter – said that the massive rise in the price of Bitcoin (BTC) from the $4k level to the $13,800 mark was basically triggered by Tether minting an enormous amount of USDT. The Twitter personality said that Bitcoin (BTC) is not sound money, as the entire digital currency market is backed by unaudited Tether, which has the highest trading volume over the past twenty-four hours. In a tweet, Rennhack said:
“Tether (USDT) has doubled the money supply year-to-date which is a pace of money printing that would make even the FED blush. This is the real reason for its huge bull run year-to-date, not because institutional investors have rushed to buy Bitcoin as safe-haven asset like they have done for treasuries this year.”
Jokingly, the analyst said that the USDT issuance rate of Tether would make even the FED blush. Rennhack is suggesting that there is no reasonable explanation for the massive bull run of Bitcoin (BTC). The analyst also disregards the discussions that institutional investors rushed to acquire Bitcoin (BTC) as a hedge against the volatility of the stock market.
Many Crypto Enthusiasts Disagree with Rennhack’s Opinion – Cryptocurrency Market Update – Cryptocurrency News Today
Apparently, not everyone agrees with the opinion of Rennhack. Some of his followers on Twitter openly disagreed with his opinion and Nick Core said that:
“Regardless of Tether and its issues which I don’t contest, you cannot factually say that this is the cause of the rise in Bitcoin price without comparing the inflows of Tether to the US dollar. A market cap rise in USDT from 1.8 billion to 4 billion does not logically explain the rise in the market cap of Bitcoin from $56 billion to $198 billion.”
Bitcoin (BTC) Price Today – BTC / USD
A report from research carried out by JP Morgan back in 2017 seems to support the estimate of Rennhack. According to the report, the valuation of the entire digital currency market had a multiplier effect of 50x. In the report, JP Morgan estimated that about $6 billion in fiat currency was invested in digital currencies, which pushed the valuation of the entire crypto market to $300 billion.
Rennhack said that Tether (USDT) worth about $2 billion has been minted in 2019 and the market cap of Bitcoin (BTC) presently comprises about 67 percent of the entire digital currency market. He added that about 67 billion in fake market cap has been added to the year-to-date price of Bitcoin (BTC), which matches the actual number quite closely. These analyses are pointing to the fact that Tether intentionally manipulates the price of Bitcoin (BTC) and other cryptos in the market. However, it is not certain if these speculations are true.