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July 29th could be a turning point for Bitcoin (BTC) and the entire crypto market

There has always been a debate on whether the 2017 Bitcoin rally was organic, or a manipulated move by a few industry players. One of the more common theories is that, the 2017 rally was fueled by Tether. According to a research titled, “Is Bitcoin really un-tethered” by John M. Griffin, there is a correlation between Tether and Bitcoin’s parabolic rise. The research found that tether could be responsible for up to 50% of Bitcoin’s rise. To quote the research,

Following periods of negative bitcoin return, Tether flows to other exchanges (from Bitfinex). These flows seem to have a strong effect on future bitcoin prices.

As per this research, Tether’s influence in Bitcoin (BTC) is usually present after periods of price slumps, or shortly after Tether printing.

So what’s the correlation between this and Bitcoin’s price in 2019? Well, Bitcoin (BTC) has been on a steady rise for the last 6 months. In this period, it has shot up from lows of $3200 to hit a high of over $13k, before stabilizing at its current $10k – $11k range. Interestingly, in this period, Tether printing has been sustained. In fact, at this point, Tether is matching Bitcoin (BTC) in volumes. At the time of writing, Tether (USDT) 24-hour volumes stood at $21,229,944.485, while Bitcoin’s volumes stood at $21,419,991.096.

The only time things slowed down was in April, when the New York Attorney General alleged that Bitfinex had used Tether to cover an $850 million hole. However, on the 16th of May, a New York court granted Bitfinex’s motion to modify the injunction, and continue operations. This was followed by the printing of close to $500 million in USDT in under a month. In the same period, Bitcoin rallied to its recent highs, an indicator that Tether could be behind this rally.

On the 29th of July, Tether and Bitfinex will be back in the courts. The judge will make a ruling on whether to dismiss the case or let it continue. If the case is dismissed, and with USDT currently matching Bitcoin (BTC), it could lead to a historic rally in the price of Bitcoin. Conversely, if the judge deems that they have a case to answer, the panic it would cause, could lead to an unprecedented crash in the price of Bitcoin.

As such, whether you are in Bitcoin (BTC) or altcoins, this is an important day to mark on your calendar. That’s because, a Bitcoin rally past its $20k highs could trigger an alt-rally of unprecedented proportions. On the other hand, a collapse in the value of Bitcoin could completely sink altcoins, as they are already underperforming.

Liam Albert Administrator
Liam is a great fan of crypto.
NOTE: xrpnewsonline bears no responsibility for any losses incurred on the reliance on the information in these buy/sell signals. Please be informed about the risks and costs of trading in financial markets. Cryptocurrencies are an extremely risky investment.
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Liam Albert Administrator
Liam is a great fan of crypto.
NOTE: xrpnewsonline bears no responsibility for any losses incurred on the reliance on the information in these buy/sell signals. Please be informed about the risks and costs of trading in financial markets. Cryptocurrencies are an extremely risky investment.
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