Tether, And Not PayPal, Boosted Bitcoin [BTC] Price Above $13,000

By Bhushan Akolkar
October 22, 2020 Updated October 22, 2020
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USDT had recently hit 2017 lows

It nearly 24 hours that payments giant PayPal announced the launch of its crypto trading services on Wednesday, October 21. Later on the day, the Bitcoin price surged past $13,000 as the bulls raged-in. Many attribute this BTC price surge to the PayPal news. However, there was a silent player possibly behind the Bitcoin price rise. Yes! it’s bitcoin’s good old friend and stablecoin Tether (USDT).

Over the last 48 hours, nearly $600 million worth of USDT has been minted and distributed within the crypto ecosystem. Twitter handle recently noted that another $150 million USDT were minted.

In the past, Tether (USDT) has been at the center of several controversies for pumping the Bitcoin price. There have been several debates about whether the Tether issuance really leads to the BTC price rise. While, there hasn’t been any clear answer to this yet, but has always kept market analysts excited. In another proof, popular analyst Joseph Young recently tweeted that BTC/USDT volume on Binance crossed $1.3 billion.

This massive levels of trading activity raise back the suspicion that there is something co-related to the USDT issuance and BTC price surge.

Tether (USDT) Issuance Happens Just Hours Before PayPal News

Another crypto analyst that goes by the pseudonymous name of CryptoHamster is rather certain about Tether behind Bitcoin’s price surge above $13,000.

Although PayPal officially announced its entry into the crypto market yesterday, the news has already been flowing some time back. This gives skeptics another chance to think if USDT could be the silent player behind the curtains. Between October 2- and October 21, the t24-hour trading volume for USDT has also spiked sharply from $35 billion to over $53 billion, as per data on CoinMarketCap.

The USDT is the third-biggest cryptocurrency by market cap and is tightly associated with the Bitcoin trading volumes. Pegged to the U.S. Dollar 1:1, Tether (USDT) remains as the most popular medium of exchange in the crypto market. At press time, Bitcoin is trading at a price of $12,864 with a market cap of $238 billion.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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