A new study published by the University of Queensland reached today’s bitcoin news where the writer Wang Chun Wei explains that USDT grants do not have a significant effect on bitcoin’s price fluctuations.
In the study, however, you can see that there is a positive relationship between USDT issuance and the increased trading in cryptocurrencies right after. Wei claims there’s no evidence of USDT manipulating BTC’s price. The key proclamation in the study is that ‘’it’s unlikely that tether manipulation caused the 2017 bitcoin rally.
However, Wei argues that USDT grants propose a light relationship with some price swings between Tether issuance and the trading volume and that Tether trading even increased the periods of negative Bitcoin returns. He also notes that he found Tether grants were timed to follow Bitcoin’s slumps confirming another study by Griffin and Shams where they say that purchases with Tether are timed to follow Bitcoin dips so Tether can be used to support Bitcoin prices.
Many other analysts will happily disagree with Wei. Some believe that even though there are many factors that impact Bitcoin’s price movements, bitcoin rallies are correlated with a new issuance of USDT, which is the dollar-pegged “stablecoin” token. The fact that Tether is issuing new tokens is a sign that new capital is coming in the crypto markets. The tokens are created when individuals or organizations deposit physical dollars into Tether’s reserve bank accounts. Also, there are analysts who claim that Tether is increasingly impacting the prices of smaller altcoins such as EOS and NEO instead of the large-cap altcoins.
CEO Of Binance Thinks That Market Is Still In A Good Position, Crypto Volume x2 Larger Than Stats
“Compared to January [of 2018], we are probably down 90 percent. So we only have one-tenth of the trading volume compared to what we had in January. But, compared to like a year or two years ago, we’re still trading at huge volumes. Business is still okay, we are still profitable, and we are still a very healthy business."Binance is still recording decent volume and maintaining a healthy business - showing an increase in its number of active users and BTC deposits. Zhao continued, stating:
“Right now we are still signing up a steady amount of new users every day so from what we are seeing, it’s very healthy actually. The number of new users and the amount of crypto we hold are increasing very steadily. So if you look our cold wallets, the amount of BTC we hold, we have just seen an increase in people depositing Bitcoin to our exchange.”Meanwhile, the cryptocurrency market cap seems to be getting hold of the over-the-counter (OTC) market where large institutional traders are playing. According to some stats from earlier this year, this market is at least two times larger than the cryptocurrency exchange market. CZ also noted that the OTC market is estimated to be at least as large as the live recorded volumes of exchanges. As such, it is now twice the size of the current volume, having around $23.4 billion (despite the $11.7 billion daily trading volume of crypto) in circulation.
“What I’ve heard is the OTC market is at least as large as the live recorded volumes [on exchanges]. So that is at least 50 percent of volumes that is not being reported on CoinMarketCap. But we’re not heading to that business, so we don’t know the real volumes,” Zhao concluded.
Major US Museum Starts Accepting Payments In Bitcoin
“There is a lot of excitement around the conference. Accepting bitcoin is just a small part of the momentum to grow a blockchain ecosystem in Cleveland.”The Museum of the Coastal Bend in Texas as well as the St. Petersburg Museum of History in Florida have both been accepting BTC for quite some time, which makes the Great Lakes Science Center officially the third museum in the US to start accepting crypto as a payment method. With this, it is easy to see that Bitcoin has become a major store of value. The $110 billion in circulation are acknowledged as a proper asset by many large scale institutions, some of which include ICE, Fidelity, Nasdaq and the New York Stock Exchange. This integration comes after Hublot, which is a Swiss luxury watchmaker, successfully integrated Bitcoin in order to sell 210 pieces of its limited edition Bitcoin-themed sports watch for $25,000 a piece, generating more than $5 million in revenue purely through these sales.
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