Tether, not PayPal, improved Bitcoin [BTC] Price over $ 13,000

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It was nearly 24 hours when payment giant PayPal announced the launch of its crypto trading services on Wednesday October 21st. Later in the day, Bitcoin price surged over $ 13,000 when the bulls arrived. Many attribute this BTC price spike to the PayPal messages. However, there may have been a silent player behind the Bitcoin price surge. Yes! It’s Bitcoin’s good old friend and stablecoin tether (USDT).

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In the past 48 hours, nearly $ 600 million worth of USDT has been minted and distributed across the crypto ecosystem. Twitter Handle recently found that another USDT 150 million had been minted.

???? ???? ???? ???? ???? ???? ???? ???? ???? ???? 150,000,000 #USDT (150,199.713 USD) minted at Tether Treasury

Tx: https://t.co/pui2y4tjLF

– Whale Alert (@whale_alert) October 22, 2020

In the past, Tether (USDT) has been at the center of several controversies over pumping Bitcoin price. There have been several debates as to whether the tether issue will really lead to the BTC price spike. While there was still no clear answer, the market analysts were always excited. In further evidence, popular analyst Joseph Young recently tweeted that Binance’s BTC / USDT volume exceeded $ 1.3 billion.

The Bitcoin-to-Tether (BTC-USDT) volume for Binance is $ 1.3 billion. Wow, I haven’t seen this trading activity in a while.

– Joseph Young (@iamjosephyoung) October 22, 2020

This massive trading activity raises the suspicion that something is related to the USDT issue and the rise in BTC prices.

Tether (USDT) is issued just a few hours before the PayPal messages

Another crypto analyst, known by the alias CryptoHamster, is pretty sure that Tether was behind Bitcoin’s price surge above $ 13,000.

I don’t think the recent surge in the BTC dollar was due to the PayPal messages.
It looks more like a “Xi pump” in October 2019.
Instead, look at what happens to the correlation between the price of #bitcoin and a #tether capitalization.
Again! (Check old posts too) $ BTCUSD https://t.co/Hz1szb8fiC pic.twitter.com/ZhORYnxZyZ

– CryptoHamster (@CryptoHamsterIO) October 22, 2020

Although PayPal officially announced its entry into the crypto market yesterday, the news was flowing back some time ago. This gives skeptics another chance to ponder whether USDT might be the silent player behind the curtains. Between October 2 and October 21, the 24-hour trading volume for USDT also rose sharply from $ 35 billion to over $ 53 billion, according to data on CoinMarketCap.

The USDT is the third largest cryptocurrency by market capitalization and is closely related to Bitcoin trading volume. Tied to the US dollar 1: 1, Tether (USDT) remains the most popular medium of exchange in the crypto market. At press time, Bitcoin is trading at $ 12,864 with a market cap of $ 238 billion.

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Disclaimer of liability

The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.

About the author

Bhushan is a FinTech enthusiast and has a keen understanding of the financial markets. His interest in economics and finance draws his attention to the emerging markets for blockchain technology and cryptocurrency. He is constantly in a learning process and keeps himself motivated by sharing what he has learned. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

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