Bitcoin moves up – Crypto Markets again Tethered?

Tether just brought $250MM USD worth of Tether into circulation. In only a few hours price moved from $6,120 to $6,330. When new Tether gets ‘printed’ it has always led to an uptrend in the charts of the most relevant cryptocurrencies.

The Tether address to watch

You can see that the ‘Tether-printing’ address just sent 250MM Tether to the address 1NTMakcgVwQpMdGxRQnFKyb3G1FAJysSfz. From there on they usually get sent to a Bitfinex address from which they will be spent on cryptocurrencies. As of now, that has not yet happened. The address 1NTMakcgVwQpMdGxRQnFKyb3G1FAJysSfz sits currently at 410,960,153.48 Tether. However, insiders have heard about this Tether creation and instantly caused some bullish price action on the chart.

Manipulation

Tether faced accusations of manipulations just some weeks ago, read more. After which they released their Tether transparency update. They stated in the introduction to the report that “speculation and negative reporting has been the result of misunderstandings of how Tether functions”. In addition that, it states how the law firm Freeh, Sporkin & Sullivan LLP (FSS) has reviewed and inspected Tether and all its bank accounts and could confirm that Tether is indeed backed by the necessary amount of USD. The full report by FSS can be read here.

So does this new creation of Tether undermine their integrity?

No, as far as we can tell there is no evidence that Tether is manipulating the market. The newly created Tether could have been created out of a growing demand for Tether. In the recent bear market, the market capitalization of Tether grew sharply. According to Coinmarketcap.com, this made Tether temporarily a top 10 cryptocurrency as it surpassed both TRON and IOTA. As of now, Tether has a market cap of $2,604,650,527 and is the 11th biggest cryptocurrency.

A tweet from Litecoin’s Charlie Lee about Tether’s move today.

Generally, this has been a precursor of price going up. Tether gets printed when people deposit USD and get USDT back. This USDT will then be used to buy crypto. This is similar to someone depositing $250MM to exchanges. Of course, that doesn't mean they will buy right away. DYOR https://t.co/zg2PEjGohv — Charlie Lee [LTC⚡] (@SatoshiLite) June 25, 2018