Over the past two weeks Bitcoin is up over $1800 USD (roughly 30% since December) but more importantly is flirting with its 200 day moving average. Making a strong move past the 200 day MA is a very bullish sign for BTC.
Every time Bitcoin makes a move the speculators on Crypto Twitter come out to give their theory on why it happened. There are usually many great theories but in reality it’s usually just a big whale or whales accumulating. Tether, the company behind USDT, has been a major driver of crypto prices increasing especially when it comes to Bitcoin.
Many analysts attribute the 2017/2018 bull run to Tether and the printing of USDT. Well this recent upward trend may be the result of that again, it is difficult to know for sure.
Digital asset investor, Charles Edwards, recently took to Twitter to showcase an increase in the supply of USDT according to Coin Market Cap statistics.
Major changes in Tether's Market Cap have led Bitcoin's price over the last 1.5 years.
5 January 2020 was no different.
A healthy signal.
Keep it printing ????️ pic.twitter.com/dfe0dBJzwh
— Charles Edwards (@caprioleio) January 13, 2020
If you’re wondering why “printing” more USDT increases the Bitcoin price just think of how central banks print more money in order to stimulate the economy. More available currency equals more to invest.
Just like any speculation, there are others saying Tether didn’t print anymore USDT and the increase was Coin Market Cap starting to count USDT on the TRON blockchain.
— StablecoinsWar (@StablecoinsW) January 7, 2020
It’s hard to know for sure the real reason for any price increase. As analysts of the market it is important to look at several supporting factors after discovering a leading indicator like more USDT being printed. Bitcoin is not the only crypto up as many other coins have posted double digit gains including Bitcoin SV which is up more than 300%. Could altcoin season finally be upon us? Time will tell and Crypto Twitter will speculate.