A 50% Increase in Tether Supply Points to Another Bitcoin Rally: Analyst

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Bitcoin should brace for another upside move as a large Tether supply waits to enter its market, according to TradingShot. The independent market analysis firm said that the USDT supply increased by more than 50 percent since August 2020. While it may have fueled the 18 percent price rebound in the Bitcoin market a month later, its actual impact on the cryptocurrency’s spot rate remains undiscovered. Bitcoin-USDT Market Cap correlation. Source: TradingView.com “There has been a significant increase in crypto buying power, and such power has not been reflected yet on the price actions,” noted TradingShot. Historically, Tether’s USDT serves as a leading indicator of Bitcoin’s price. In November 2018, for instance, the BTC/USD exchange rate fell 46 percent. The move appeared almost six weeks after USDT experienced a 44 percent plunge in its supply. Also, in May 2019, the number of USDT tokens in circulation shot up by 30…

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