Long have there been rumours regarding Bitcoin’s price and Tether. Are they true though? One can only speculate. Tether’s total circulating supply right now is approximately 200 million USDT short of reaching 4 billion.
As Tether’s market cap hit a new high of $4 billion, Bitcoin stopped its descent and started pumping again. Coincidence? Maybe. Maybe not. What is clear however, is the fact that Tether printed 50 million USDT, just when Bitcoin had finished breaking out of the rising wedge pattern mentioned yesterday.
Guess what happened next? Hint: Bitcoin flips and pumps 12% in an hour.
Bitcoin has always pumped, whenever USDT has been printed. On July 8, the price of Bitcoin pumped significantly after 100 million USDT were printed. The reversal on 9 July was thwarted when another 100 million USDT were printed by Tether.
The same effect was seen on July 14. However, an even more interesting observation is when Tether “mistakenly” printed 5 billion USDT. CTO of Bitfinex, Paolo Ardoino, had tweeted,
While preparing the issuance for Omni to Tron swap there have been an issue with the token decimals. Please check the burn transactions below @Tether_tohttps://t.co/reEW51qCqihttps://t.co/zo5i3ayTuQ https://t.co/h1Y9Mnr4Oq
— Paolo Ardoino (@paoloardoino) July 13, 2019
The issuance was followed by Tether burning 5 billion USDT in two steps, 4.5 billion and 500 million USDT. Poloniex confirmed the same.
“Paolo is correct – this occurred while Poloniex was conducting a USDT chain swap with the help of Tether. An incorrect amount of USDT was accidentally minted, and this has since been resolved to the intended value.”