Bitcoin’s price jumped from $10k to $11k within a few hours and the entire market has been preparing for the coin to hit $20k next. However, the activities behind the pump of the king coin have raised concerns for investors and the crypto community.
As Bitcoin’s price started to approach $10k, Tether Treasury minted almost 100 million USDT, which was speculated by many users to be the cause, just like last time. However, Twitter user @spencernoon had a few predictions under their sleeve as to what’s causing the Bitcoin run-up:
“Retail investment indicators like tweets are still at low levels, which suggests this rise is likely due to some combo of (i) institutions accumulating and (ii) actual SoV usage in places like Iran/Hong Kong—both encouraging signs.”
Another user also pointed out towards Tether’s trading volume, which has been increasing since March. According to data collated by Messari, Tether reported a trading volume of $25,700,398 on March 31, while there was a gradual increase over time and on June 21 the volume was reported to be $138,341,033 million.
Ari Paul, chief investment officer and managing partner of cryptocurrency investment firm BlockTower Capital, also added his opinion on the ongoing ruckus and according to him the reason for this jump of BTC was:
“Gradual institutional buying with spurts of buying from Asia and Latin America to hedge weak currencies and protect wealth against tariffs and capital controls.”
However, Twitter users rejected this speculation from Paul and asked him about the popular ‘Tether pumping the market’ theory. However, Paul dismissed it saying:
” why do you think people buy tether? It’s the fiat on-ramp for large swaths of Asia.”
Bitcoin might be reigning the market, but the crypto users have turned more vigilant this time to identify the reason for the rising Bitcoin price.