While the size of the Bitcoin community has shrunk in recent months, part of the crypto industry has been growing steadily: the market capitalization of Tether’s USDT, the leading dollar stablecoin.The cryptocurrency, now the fourth largest by market cap, has responded to increasing demand in recent weeks, with Twitter account Whale Alert tracking a series of transactions that indicate high USDT demand. It has just been reported that more tether worth $ 120 million has been minted. That, analysts say, could be a big step forward for Bitcoin and the rest of the crypto market.
Tether’s $ 7 billion market cap – BTC will benefit
According to data from cryptanalysis tracker Skew.com, the amount of USDT in circulation recently exceeded 7 billion or about 3.4% of the total market capitalization of the crypto market, according to CoinMarketCap. This follows a series of $ 120 million prints like the one just mentioned.Analysts believe this trend is positive for the crypto market – and that it could actually explain much of Bitcoin’s recovery from the March low of $ 3,700 to the current price.Charles Edwards, a digital asset manager, wrote in January that “major changes in tether have driven Bitcoin’s price in the past 1.5 years.”Before the almost 50 percent crash in November 2018, when Bitcoin crashed from $ 6,000 to $ 3,150, the amount of USDT in circulation dropped by hundreds of millions. Even before most of the 2019 crypto rally, hundreds of millions of USDT were printed.