A crypto Twitter analyst believes that Tether’s USDT issuances are the real catalyst of the Bitcoin price bull move from $4,000 to $13,800.
Bitcoin is not “Sound Money”
Earlier this week twitter personality Andrew Rennhack suggested that Bitcoin’s explosive rally from $4,000 to $13,800 was primarily fuelled by Tether printing a vast amount of USDT. According to Rennhack, Bitcoin is not “sound money” as “the entire cryptocurrency market is backed by unaudited Tether which has the top 24-hr trading volume.”
Close observation of the chart shows that Bitcoin’s market cap has a tendency to lag behind Tether’s.
As of today, Bitcoin has not ‘caught up’ to Tether’s increases and some analysts believe that this supports a bullish case for Bitcoin over the short-term.
The Plot Continues to Thicken
Many people believe that Tether’s peculiar method of injecting USDT into the crypto market is nothing more than market manipulation. The New York Attorney General’s office is clearly in this camp and most recently Tether has been embroiled in a lawsuit alleging that Tether and Bitfinex illegally operated in the state of New York.
Bitfinex’ed, a crypto-blogger who has closely followed Tether’s activity for years, believes:
Bitfinex issues tethers to their traders for market manipulation, market manipulators pump and dump, then ‘pay’ for the tethers later.
Late last week the New York Supreme Court judge overseeing the case postponed issuing a decision on the case so it will be a while before the community gains a deeper insight into the matter.
Do you think Tether intentionally manipulates the cryptocurrency market? Share your thoughts in the comments below!
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