Is Tether Pumping The Price Of Bitcoin?
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There has been quite a lot of noise made in current weeks, months and years concerning the influence of stablecoins on the bitcoin (and extra broadly, the crypto) market. In mixture, the entire world provide of stablecoins continues to develop and make new highs, with a present tally of $110 billion in circulating provide on the time of writing.
In explicit, quite a lot of noise has been generated on the legitimacy of the stablecoin Tether (USDT), with claims of fractional reserve or “pumping the price of bitcoin” having been made. The circulating provide of USDT is $62.9 billion on the time of writing.
On August 6, Tether made their reserves audit from June 30 public, by which they broke down the asset allocation and the maturity of the industrial paper held by the stablecoin issuer. This was a really notable step taken by Tether to extend transparency on the most important stablecoin within the crypto market.
With Tether growing the transparency and the legitimacy of the market’s main stablecoin, an fascinating pattern has emerged within the stablecoin and bitcoin markets.