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Hi Crypto Network,

We have covered many topics across our blogs over the years, but I wanted to address one area which is currently being spoken about among traders and investors in the space. Is Tether the cause of bitcoins price rise?

Bitcoins Recent Price Rise

 

What’s Going On With Tether And BTC

Bitcoin prices are expected to rise with the printing of Tether worth $100 million. Analysts say that Bitcoins price might eventually hit all time high of $20,000

This volatility nature makes Cryptocurrencies unpopular among investors and financial institutions. Tether is, however, immune to this problem. It is a coin that was invented to solve the inherent volatility of Cryptocurrency market: these types of coins are known as Stablecoins.

Why Stablecoins Exist & How They Work

Digital Currency – Tether

Virtual currency Tether was launched in 2015, and since then it is the leading Stablecoin in the Crypto market and has a market cap of over $3,719,238,580. For every tether token issued, $1 is backing it up essentially dollar pegged. It is expected that when it has reached a certain point, one can exchange the token for the US Dollar. This provision makes Tether a secure coin and can be used by investors and traders without the fear of making losses.

Controversy & Tether

Tether USDT, has however been a controversial coin from conception, the exchange Bitfinex in the last year alleging Bitfinex are the same entity as Tether and that Tether tokens are NOT backed as claimed, thereby falsely inflating the value of the Crypto asset. A case was filed in court against Tether with the US justice department still investigating the matter. Some traders and analysts had alleged that tether was being used to buy Bitcoin at crucial times when the value of the token had dropped.

Tether also does not have a full audit, which is a requirement by the US government for any Stablecoin. They have been dogging this for a while with an attempt to audit it being done last year. The company claimed that it is large, and more time will be needed to finish the audit. These controversies, among others, are believed to crop from the fact Tether lacks a defined role in the Crypto market.

How and why Tether affect Bitcoins price

Since its introduction into the Cryptocurrency market, Tether market trends have been affecting the price trends of other cryptocurrencies more so Bitcoin. With the recent printing of Tether worth $100 million, Bitcoin’s price is expected to rise: the prices might consolidate for a while then rise. Contrary to the later, late last year, Tether worth $300 + million was removed from the market, and this made Bitcoin’s price to drop by 5% from a support of $6000.

The logic behind is that Bitfinex prints more Tether, many people will invest in them. Investors may choose to either buy the Tether using fiat currency or exchange it with other cryptocurrencies: most prefer exchanging it with Bitcoin then later trade the Bitcoins for USD when the prices are higher. Consequently, the printing of Tether will result in a bullish movement in the market for Bitcoin. Changes in bitcoin’s price will, in turn, affect other Cryptocurrencies.

How This Could Affect A Trader’s & Your Portfolio

The investors will dominate the market, especially when it comes to Bitcoin. Efforts by sellers to bring the price down will be suppressed by the high volume of tether-bitcoin trade. Altcoins will be expected to follow the same trend as Bitcoin.

However, on the other hand, traders should beware of the devastating ripple effects that will be experienced in case Tether collapses. The collapse is indicated by the many controversies that are surrounding the Cryptocurrency. Many exchanges, which have their volumes trading against tether, will suffer together with the traders who rely on it during downtrends in the Crypto market.

Platinum Crypto Academy & How We Can Help

Do you want to build a giant Crypto Portfolio and learn exactly how to monetize it? Do you want to be free of your current role? Do you want to have the financial backing to do anything when and with you want?

There is a simple formula for what works, and anybody can do it: –

#1 Commit – This means sacrificing some things in life in order to commit to the goals you really want to accomplish

#2 Learn – Get Knowledge! If you lack anything, it’s because you don’t know something.

#3 Gain Confidence – This final point is a bi-product of commitment and knowledge, when you have this you will be able to navigate the markets with confidence and assertiveness, making decisions that will change your life!

Commit + Knowledge = Confidence 

That’s why when you get on Platinum Crypto Academy it may take a little time for the fruit of your time to begin to show but time does reveal everything.

Just as it was inevitable that the internet would be successful so it will be inevitable YOU will become more successful if you get on Platinum Crypto Academy and give it an honest effort.

If you’ve booked your session above, we look forward to speaking to you soon!

Hopefully, you have enjoyed today’s article. Thanks for reading!

Have a fantastic day!

Live from the Platinum Crypto Trading Floor.

Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.