Trader points to Tether Market Cap as leading indicator for Bitcoin pump

12 Jun, 2019
by David Borman
Price Analysis
Trader points to Tether Market Cap as leading indicator for Bitcoin pump

Today Bitcoin, and the whole market, has seen some impressive upside back above the $8,000 level. Now, one trader seems to have basically predicted this pump based upon the recent rise in Tether's own market cap, as they have just minted $150 million new Tethers. It is however unclear if the new USDT has actually entered the market, or if the pump is based upon anticipation, or if this is just coincidence.

Twitter trader @filbfilb originally noted the rise in Tether's market cap that occured in late April, when the company minted $300 million worth of USDT despite the ongoing Bitfinex controversy:

A few weeks later, @filbfilb posted again, noticing that Bitcoin had run up shortly after Tether's rise in market cap, and possibly in response:

Now, the same user has noted that again, the Tether market cap has pumped due to the company minting an additional $150 million USDT:

Here @filbfilb openly speculates if Bitcoin will follow again. Well today we certainly have seen a nice bump in the Bitcoin price, however there is a chance this is too early to be the result of the new Tethers. For one, the new coins were minted, but not issued, at least as of yesterday:

Seeing as the last time Bitcoin followed Tether it took weeks, not hours to play out, it is possible that this is either buying based upon anticipation of the rise (after all, other traders have certainly seen this connection), or it is simply a coincidence. Will Bitcoin continue on its upside trajectory thanks to Tether, or will this connection fade away? Stick with Chepicap for all updates!

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