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USDT No Longer Impacting Bitcoin Price: Bloomberg Says
Editorial Team

Bloomberg reported that the printing over half a billion worth of new coinage throughout the month of August by Tether (USDT) has had little to no impact upon the crypto markets.

Tether the company behind the most popular stable coin cryptocurrency now ranks 8th in total market capitalization with $2.84 billion in circulation, according to the publication from The company has experienced various investigations particularly those pertaining to the assets backing the coin.

In August, there was a massive influx of new tether into the crypto market. Despite adding an additional $500 million worth to the market capitalization, a move that has in the past brought accusations of Tether and its partners artificially propping up the price of the industry, Blomberg reports that the connection between new USDT hitting exchanges and an increasing Bitcoin price has eroded over the past year. Tether has no longer the same impact as in the past due to either the prolonged bear cycle of 2018, which is already drawing attention for its investor fatigue or a new market force at work.

Past injections of Tether of the same level have driven to a major price movement for Bitcoin and the crypto markets in general. However, in August 2018 we have witnessed one of the steepest declines across the board for BTC and altcoins with most currencies experience double-digit losses. This has led some to the conclusion that either Tether is not directly manipulating the market with its timing and method for USDT injection or that the same forces that coupled Bitcoin rallies so closely with Tether injections have evaporated from the market.

Some analysts recognize stable coins as an interesting caveat to the high volatility, high risk of cryptocurrency investing. In comparison to BTC and the other altcoins, USDT provides the advantages of cryptocurrency while pegging the valuation to a fixed amount – in this case, the US Dollar. Some other analysts find that the currencies exhibit are too centralized and lack the departure from government fiat that has been so enticingly portrayed in most of cryptocoins, as the publication reads. Nevertheless, within the bear crypto markets during 2018, Tether has become a safe harbour for investors away from the high price volatility of the market.