Tether Nears On $17 Billion Market Cap As Bitcoin Skyrockets

Tether nears on the $17 billion market cap range as the stablecoin company profited from Bitcoin’s recent rise as we can see in the latest Tether news today.

The US-dollar pegged Stablecoin Tether nears on $17 billion market cap which means that there are about $17 billion real US dollars sitting in a vault which investors exchanged for the stablecoin. According to tether’s website, there are now 16,991,893,171 USDT in circulation, each representing 41. Tether claims that it holds $148 million in its vaults which have not been turned into circulating Tethers.

The company unleashed a batch of $10 million new USDT onto the market at around midnight. Some believe that this caused BTC’s price to shoot up from $15,501 to $15,869. Some believe that this happened because the stablecoins make up a third of the value of all blockchain transactions according to the reports from Chainalysis. Minting more Tethers indicates that the crypto market is heating up.

One theory is that this signals that all Chinese crypto investors are purchasing Bitcoin. They use USDT on informal BTC OTC trading desks which is a way of skirting government regulations around the cryptocurrency, according to a report from Sino Capital. Since the Chinese government banned Fiat conversions of the yuan for BTC, the bank does tolerate Tether to yuan conversions as Chainalysis found that Tether is the only fiat stand-in for the Chinese crypto users.

Another theory by John Griffin on the University of Texas and Amin Shams of Ohio State University in 2019 suggesting that Tether’s tool of manipulating Bitcoin’s price alleging that a single whale manipulated the market cap to cause the 2017’s price surge. Tether disputed this as well as the researchers from UC Berkeley. Tether boosted its market capitalization as in January it was about $4 billion. Tether profited from the coronavirus pandemic when the volatility in mid-March crash caused crypto investors to transfer wealth from highly volatile currencies into stablecoins.

Then USDT profited from the summer’s decentralized finance boom when the investors were able to lend out Tethers on the non-custodial lending protocols and on-exchanges for high yields. Over the past month, Tether stands to profit from the rise of BTC which drew more investors into the market. Now if Tether finds a way to get to the New York Attorney General that is investigating the company for corruption to get off his back, it could shoot up even more.

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