The world’s oldest stablecoin, Tether, has time and again exhibited suspected market manipulation patterns. One of the most debated subjects in the cryptocurrency ecosystem is whether Tether is pivotal to Bitcoin’s surge and overall movement.
After Bitcoin and the prices of most cryptocurrencies plummeted significantly on 1 July, the news of Tether Treasury minting more Tether [USDT] surfaced. Whale Alert, a popular cryptocurrency transfer data aggregator, also highlighted the same in a tweet.
???? ???? ???? ???? ???? ???? ???? ???? ???? ???? 100,000,000 #USDT (99,161,376 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) July 1, 2019
Bitcoin spiraled down and recorded a major pullback in late June, soon after leading a massive rally. However, notable analysts and prominent crypto-proponents have speculated that Bitcoin is on its way to price recovery, owing to the quickly-minted Tether.
The cryptocurrency data aggregation website also posted two more alerts notifying two transfers of 15,000,000 USDT each. Here, the first one was from Tether Treasury to Bitfinex, and the second was from Bitfinex to Tether Treasury.
Another noteworthy trend was seen on CoinMarketCap, following Bitcoin’s rise at press time. BTC was traded the most via the trading pair BTC/USDT in all the top 14 exchanges. Besides, Tether worth $600 million was reportedly minted in June, the same month as when Bitcoin’s price shot up from $8,000 to over $11,000, for the second time after a pullback.
Following the resurfacing of the much-debated “Tether minting and Bitcoin pumping” affair, Tuur Demeester, Founding Partner of Adamant Capital, tweeted,
“I think the new Tether that’s being created is simply reflective of new dollars coming into the [Bitcoin exchange] ecosystem. … 99% of the time, when the Tether supply goes up, that coincides with new USD coming into Bitcoin exchanges.”