What Is The Interrelation Between The Bullish Price Increase Of Bitcoin And Tether?
Tether’s stablecoin provides 5% of Bitcoin’s market capitalization. Crypto analysts believe that bullish impulses of the flagship cryptocurrency are interconnected with indirect support for the American dollar.
In trading and investment circles, Tether has established itself as a reliable hedge asset. Now coins are available on a variety of the most sought-after blockchains.
What blockchains does Tether use?
Tether acts as a cryptocurrency, which is supported by fiat funds. That is why it is in great demand in the commercial and investment space. The bulk of the coins is located on the Ethereum site.
Tether is mined on a relatively large number of blockchains. In particular, it uses the Tron, Algorand, Omni protocols, thanks to which the exchange, purchase or sale of tokens is carried out.
A few days ago, this stable Tether coin was launched on Bitcoin Cash. As a result, 4.1 million USDT tokens were issued.
Analysts concluded that the bullish trend of the Bitcoin exchange rate is due to the connection with the USDT, which is supported by the American dollar. 5% of Bitcoin’s market capitalization is in USDT.
More recently, a scandal erupted around Tether. It was proved that the crypto asset enjoys the support not only of the American dollar but also by other fiat means and cryptocurrencies. It seems that the crypto community is not interested in solving the problem of reducing confidence in Tether Limited, the official issuer of the crypto asset.
Today, the market capitalization of USDT is estimated at $4 billion. Token holders are expected to convert their funds into Bitcoin, or other leading crypto assets such as Ethereum (ETH), Litecoin (LTC).
New Crisis Initiative: US Prints Over $100 Million
Yesterday it became known about the large-scale minting of the key US currency. According to Whale Alert, $120 million was released. These funds will be used to replenish the state treasury after a huge deficit associated with the withdrawal of funds to combat the pandemic.
Some financial analysts criticize government action. In particular, the arbitrary printing of fiat funds may cause Bitcoin to remain within the current market indicators.