Crypto Week in Review: Tether (USDT) Adds $2 Billion to Its Market Cap
While there’s no clear indicator as to why Bitcoin saw a price increase this week, there seems to be a growing sentiment amongst traders that BTC has found its bottom and is unlikely to fall below $6,000 again.
Others are pointing to the U.S. stimulus plan, which has injected trillions of dollars into the economy. Investors like Mike Novogratz say such a move could “debase” the value of the dollar.
“That literally is a printing press,” said Novogratz. “I’m getting calls from real big investors we’ve never seen before, saying, ‘Tell me about this bitcoin.'”
All of this comes as Bitcoin approaches its third Halving, where the reward for miners will be cut in half, and its inflation rate reduced to under 2%.
With the real use cases of crypto becoming more evident, one thing remains certain; volatility is here to stay.
Quant Network (QNT) +51.5%
Nano (NANO) +33.4%
Icon (ICX) +26%
Algorand (ALGO) +19%
Voyager Token (VGX) +18.3%
as of 9:30 pm (EST) on 4/4/20
$2 Billion Tether Minted
As billions of dollars were liquidated from global markets amid the Coronavirus pandemic, the U.S. Dollar emerged as one of the safe-haven assets of choice for investors.
In recent weeks, USD stablecoins have also faired well despite Bitcoin and other cryptocurrencies experiencing double-digit losses. Since mid-February, Tether (USDT) has increased its market capitalization by nearly $2 billion, according to Messari.
Other stablecoins have also benefited from turbulent crypto market conditions. USD Coin (USDC) has seen demand grow 60% in the past month, according to Circle Chief Executive Officer Jeremy Allaire.
The increased liquidity of stablecoins could mean more volatility in the crypto market. With additional Tether and USDC sitting on exchanges, traders can quickly buy and sell without the delays of moving in and out of fiat currencies. Also, Bitcoin’s price has historically increased with the supply of Tether. In January, $500 million new Tether were minted, causing a 5% increase in the price of Bitcoin.
The Man Behind the Petro
Gabriel Jimenez was an active member of the opposition in Venezuela and spent his life protesting against the Chavez and Maduro regimes. But then, Maduro himself asked Jimenez to architect a national cryptocurrency, the Petro.
Jimenez saw the opportunity to change his country for the better, and fight against the hyperinflation that had decimated the Venezuelan economy and devastated its people.
What’s the real story behind the controversial Petro and the man who designed it? Scott Melker sat down with Jimenez to hear it in his own words for the first time. Listen now.
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