Tethers go up, and so does Bitcoin
People are moving into Bitcoin...
A large issuance of tethers was observed earlier today...
Specifically, we saw about $500 million worth of tether enter the market in one 5 minute span.
The result?
You guessed it.... a climbing bitcoin price:
Coincidence? I think not....
What does this mean?
Tethers are often the easiest way for traders/investors to move crypto assets, especially in places with tight crypto to fiat on/off ramps.
And large increases in tether have very often happened right before large increases in bitcoin.
Implying that traders are using tether to move into bitcoin.
This was also why many of the skeptics out there were quick to say tethers were being used to artificially prop up the price of bitcoin and other altcoins.
Whether that is true or not seems to still be up for debate.
Tether increases good for bitcoin?
Either way though, if you are long bitcoin (and the rest of crypto) you love to see large increases in tether...
(Source: https://coinmarketcap.com/currencies/tether/)
As they often precede an increase in the price of bitcoin.
Today is a perfect example as bitcoin went up very shortly after the large tether issuance.
Hopefully eventually some of that love eventually finds its way into steem again.
It's been far to long!
Stay informed my friends.
-Doc
Man, i hope they keep printing those tethers! :))
Same here. Just need steem to see some love as well.
There have only been 3 or 4 days that have "felt good" in crypto land in the last 3 months. This was one of them.
Has there been that many? haha
I suppose when there's more liquidity going around, such as with stable currencies like Tether, investors and traders would probably put them into more lucrative assets, like Bitcoin. I see that more cryptos are seeing some large green upticks following Tether's new supply, mostly seen on XRP's ~10% surge.
Now that BTC's cleared the $7,800 resistance, a steady hold above could let it break above the mystical $8,000 barrier soon, and onto the $8,200 resistance. Once it clears steadily above that, the sky's the limit!
Hopefully this is the start of the much anticipated altseason!
I absolutely did not expect this movement. I was very surprised.
Were you short?
now I’m out. I didn’t trade today
If Bitcoin goes up too early, it puts more pressure on it to crash once more before big climb up... This is because when Bitcoin goes up, due to delayed effect EMA40 doesn't get any closer to current trade value.
Plus there does some to be a sell the news event surrounding the halving. IE, the price has a decent sized run up prior to the halving, then pulls back and consolidates through the halving and then the big run starts a few months post halving.
I think there is always two smaller climbs on top of the big climb and currently we are at the start of the second small climb... kind of boob pattern... eh...