As Bitcoin’s valuation ladder rises in 2021, the demand for stablecoins has surged since January 1. In fact, at the time of writing, the collective market value of all stablecoins, total Just in the past 12 days, the supply has increased by 4 billion US dollars, and the total supply has increased to 33.5 billion US dollars.
Coin indicatorThe data shows that Tether is responsible for issuing more than $2 billion in supply, U.S. Department of Agriculture The supply adds another $500 million worth of assets. As the supply of stablecoins in the Bitcoin bull market gets attention, there may be more under the surface of the market.
Institution or Tether: Who is dominating the market?
In the past few weeks, the most common narrative surrounding the crypto space is that institutions are currently accumulating Bitcoin, which has contributed to a bull market rebound. Now, there is a clear logic behind this, because qualified investors hold Bitcoin for a long time. However, institutions may not be the only or even the most important driving factor behind the rise in bitcoin prices. On the contrary, Tether may have participated in the proceedings more than previously expected.
In order to understand Tethered For the possible role in the current rally, we compared two sets of indicators-trading volume near the end of the 2017 bull market and trading volume as of press time.
As early as 2018, when the trading volume of the U.S. dollar and the Japanese yen exceeded $2 billion Bitcoin It fell to $8,100 on the chart. At the time, Tether’s share during the same period was $795 million. Now, since institutional investors are not fully present in 2018, we estimate that 2021 will include higher dollar trading volumes. But that is not the case.
As of press time, as shown in the attached chart, USD Bitcoin’s transaction volume is only $1.25 billion, and USDT accounts for $6.88 billion in all bitcoin transactions.
With this in mind – institutions will not be accessible Bitcoin The reason why transactions are conducted through Tether is that most of their purchases come from the OTC service desk, rather than a centralized trading center. Here, it is safe to say that institutions can only access Bitcoin through fiat dollars and not stablecoins.
Therefore, if institutions are the main catalyst for the bull market, the USD trading volume should be even closer to Tether’s trading volume.
Now, considering that Tether may host the show, the importance of January 15 should be the focus of Bitcoin investors’ attention.
January 15th, NYAG Tether deadline: Will Bitcoin respond?
The infamous tether-Bitcoin The plot has been going on for a long time. The case started in April 2019, but we may make significant progress on January 15, 2021.
According to the last announcement Responsible by the New York State Attorney General or NYAG, Tether should complete the transfer of loan documents related to the $850 million allegedly covered up between Tether and Bitfinex. According to reports, the deadline is January 15, so cookies may start to crash from here.
Although Tether has been hyped during this rally, the SEC has issued a statement Last year was the topic of stable coins. One of its excerpts says,
“According to the Federal Securities Law, whether a particular digital asset (including a type marked as a stable currency) is a security is essentially a decision of facts and circumstances. This decision requires careful analysis of the nature of the tool, including its intention to convey Rights and how to provide and sell.”
There are speculations that NYAG may try to push Tether in the direction of unregistered securities in its transactions with USDT. If so, this particular situation could have a significant impact on Bitcoin.
Should investors be worried on January 15th?
knew Is a better word.
Although January 15 may or may not drive Bitcoin’s correction, any developments related to Tether should be monitored to track market changes. Regardless of popular market narratives, Tether has a great say in the value of Bitcoin and any negative connotations of Bitcoin. USDT It is bound to affect Bitcoin. However, the only question here is what the timetable is.