Tether just printed another $240m as demand for Bitcoin flourishes ๐จ This article is 4 years old...
Tether just printed another $240m as demand for Bitcoin flourishes
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Updated: Apr. 28, 2020 at 10:01 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Demand for Bitcoin has been skyrocketing in recent times, with this newfound excitement from investors coming mere weeks before the benchmark cryptocurrency undergoes its highly anticipated mining rewards halving event.
The short-term implications of the halving on Bitcoinโs price are debatable, but it is an undoubtedly bullish event from a long-term perspective as it reduces the cryptoโs annual inflation rate by 50%.
The surging demand for BTC is elucidated while looking towards the accumulation rates amongst whales, and can also be seen by the massive issuance of freshly minted Tether (USDT).
Tether just printed another $240m; hereโs why thatโs a big dealย
The so-called โTether printerโ has long been watched by cryptocurrency investors as an indicator of where Bitcoin might trend next.
The issuance of USDT tokens isnโt a decisively bullish or bearish occurrence in itself, as it can suggest that demand for the token is rising due to traders fleeing positions in volatile digital assets.
It can also mean that more money is entering the markets using USDT as a gateway, with these stablecoinsโ growth being a sign of heightened demand for Bitcoin and other cryptocurrencies.
Today, another $240 million worth of USDT was printed, as reported by Whale Alert โ a popular Twitter account that announces notable supply movements within the crypto market.
Tether CTO Paolo Ardoino was quick to respond to these tweets, explaining that $120m of the total $240m issuance was an inventory replenish. This is a sign that demand for the stablecoin is on the up-and-up.
โPSA: 120M USDT inventory replenish. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.โ
Although in the near-term this isnโt conclusively bullish for Bitcoin, it is highly probable that this money will ultimately be siphoned into Bitcoin and other cryptocurrencies, acting as a war chest for the market.
Demand for Bitcoin flourishes as whales enter full accumulation mode
The massive spike seen in Tether issuance is one sign of increased investor activity in the market, but another more overtly bullish sign is the recent accumulation undertaken by Bitcoin whales.
As reported by CryptoSlate last week, data from analytics platform Glassnode shows that 2020 has been a year of accumulation for so-called BTC whales.
โThe number of BTC whales continues to grow, hitting 2-year highs โ the last time we saw this many during an accumulation phase was in 2016. This becomes interesting when we compare it with the last Bitcoin halving.โ
While coupling this with the latest USDT issuance it becomes clear that market participation rates amongst investors are rising rapidly as the halving fast approaches.
Bitcoin Market Data
At the time of press 10:01 am UTC on Apr. 28, 2020, Bitcoin is ranked #1 by market cap and the price is up 0.16% over the past 24 hours. Bitcoin has a market capitalization of $142.4 billion with a 24-hour trading volume of $34.64 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 10:01 am UTC on Apr. 28, 2020, the total crypto market is valued at at $222.67 billion with a 24-hour volume of $127.47 billion. Bitcoin dominance is currently at 63.95%. Learn more about the crypto market ›
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Tether
$0.99972
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Glassnode
Glassnode brings data intelligence to the blockchain and cryptocurrency space.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.