The Bitcoin price recently saw a slight bump and rose under 2% in an attempt to extend the market’s weekend recovery this week.
However, even the news that Tether issued $50 million worth of new tokens did not affect the BTC price, which is now again in a slight minus, hovering above the $6,000 mark. In fact, Bitcoin fell from $6,458 to $6,058 and its market cap is also in the red.
Even though there are many factors that impact Bitcoin’s price movements, the weekend rally also correlated with a new issuance of USDT, which is the dollar-pegged “stablecoin” token that was created by the controversial cryptocurrency startup Tether.
As the data from Omni Explorer showed, the Tether Treasury issued 50 million USDT on Saturday, representing a new influx of $50 million into the crypto market. The tokens were transferred to Bitfinex, representing the third time this month that Tether sent $50 million in USDT to that exchange.
With a market cap of over $2.5 billion, Tether is holding $500 million in reserve – funds which have been authorized for issuance but also ones that are not yet distributed.
However, the most interesting correlation is the one between USDT issuance and the Bitcoin price movements. While critics point that the token (USDT) is being used for manipulation of the crypto markets through a fractional reserve, Tether recently hired Free, Sporkin & Sullivan LLP (FSS) which is a legal firm founded by a former FBI director – all in order to review its finances.
The cryptocurrency exchange Kraken also denied that there is any evidence that the token is used to manipulate the Bitcoin price.
Bitcoin Is Close To $4,100 As Tokens Gain 20%
"In my opinion, blockchain and crypto-related investment opportunities will be one of the fastest growing sectors in the alternative asset management space in the next 10 years. This means that every alternative asset manager will have to create a strategy to help their LPs gain exposure to the nascent industry," Pompliano said.Aside from the greens recorded in the top 20 cryptocurrencies, the best performers on the day include the names of Ontology, Ravencoin, Tezos, Huobi Token, and KuCoin Shares - all recording gains from 12% to 25% on the day.
Analyst: 90% Of Smaller Crypto Projects Will Result In Complete Loss
“No matter how these small projects are financed (via an ICO, premine, fair launch, dev reward, self-funded etc.), they are essentially young startups in a completely unproven technological field. Such startups are known to have an extremely high failure rate of about 90%,” the analyst explained.The "Wolf of Qtrade.io" also said that only Bitcoin, Ethereum and Monero are the coins that have "traction" and ones that should make up core crypto exposure.
"There’s no denying that there’s a realistic chance that somewhere in the 10% of the projects that survive lies a gem that ends up providing a 10x, 100x, or even 1000x return on investment," he said.Overall, his thoughts are very much in line with the other traders in the crypto community which now recommend investing only in the cryptocurrencies one can afford to lose and building the portfolio around high-cap coins such as Bitcoin and Ethereum.
Mayor Of Chicago: Cryptocurrency Will Save Countries From Financial Crises
“The trend lines are affirmative for its future. I don’t know if that’s ten years, and I don’t know if that’s 20 years, but it’s affirmative. I don’t know what it is. I know it’s an alternative way to trade, and therefore, I gotta learn about it, and I gotta be honest, as mayor, it’s not the top 100 things I would have to learn about.”Emmanuel also noted that the nation states are falling apart while the "city states are emerging." This is why Chicago and other major cities have their own wage laws, some of them even have their own income taxes and many other different regulations. In times when countries like Iran and Venezuela are facing financial embargoes, cryptocurrency can be a possible way to maintain global transactions, according to Emanuel.
"Nation states are falling apart, or receding. City states are emerging, so the political structures we all grew up under are changing. One day, somebody's going to figure out - whether that's Argentina, ten years from now, five years from now - how to use cryptocurrencies to stay alive when their facing a financial crisis, and then you're going to find out that this moment has arrived," he confidently said.To sum things up, Emanuel said that he believes that "an alternative way of currency dealing with the debt markets is going to happen" at some point in the future.
The trend lines are affirmative for its future. I don't know if that's ten years, and I don't know if that's 20 years, but it's affirmative. I don't know what it is. I know it's an alternative way to trade, and therefore, I gotta learn about it, and I gotta be honest, as mayor, it's not the top 100 things I would have to learn about," Emanuel concluded.
Tech Giant Kakao May Introduce Millions Of People To Crypto
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