Large inflows into the crucially important stablecoin, USDT (Tether) suggest that Bitcoin and other cryptocurrencies may be in store for large movements in the coming days.
Theodore “Ted” Smith doesn’t need a meteorologist to tell him whether or not the coming winter will be harsh — the signs are everywhere. A corn farmer from Missouri, he can tell just by looking at the very crop he sows.
The corn husks tend to grow just that much thicker, the geese and the ducks seem to be less numerous. The Monarch butterfly makes an early departure from the meadows and fields. The hair on the nape of a cow’s neck grows thicker and more coarse and the raccoons develop much thicker tails and bright bands.
Over the centuries, farmers everywhere and not just in the corn belt of Missouri like Smith, have learned from their forebears the things to lookout for to prepare for each coming season.
And so is it with cryptocurrencies.
The seasoned hand would no doubt have noticed the inexplicable surge in market capitalization almost overnight in the world’s favorite dollar-backed stablecoin (and I use the term “backed” loosely), Tether.
From the end of March to the start of April, as if to signal the first day of spring, Tether surged from a market cap of about US$4.6 billion to US$6.1 billion, a rise of over 30% and at a time when there was otherwise muted movement in other major cryptocurrencies such as Bitcoin and Ethereum.
Several days later in early April, Bitcoin once again pushed past the resistance of US$7,000 before tracing back to just below US$7,000 again. Today it sits somewhere between US$6,800 and US$7,000.
As many cryptocurrency traders would no doubt have noted, large falls in the dollar-value of cryptocurrencies have often been preceded by large deposits of cryptocurrencies into exchange wallets.