If Bitcoin reacts to the recent substantial printing of more Tether stablecoins the same as it has in the past, we may finally have a catalyst for the crypto asset retesting its former all-time high.
According to an ongoing correlation that suggests Bitcoin pumps with each new chapter of the Tether saga, the leading cryptocurrency by market cap’s story in 2020 could be capped off with a very happy ending.
Will Bitcoin Explode In Price After Tether’s Market Cap Adds $5 Billion in Supply?
Crytocurrency investors are watching in wait for confirmation that the new bull market in Bitcoin is here. A bullish retest in progress is the closest thing to a confirmation yet, and if it holds, the crypto market will gain some added momentum.
However, another unexpected factor could help favor a bullish breakout and further upside in the leading cryptocurrency by market cap. The parent company behind Tether has just issued the largest boost to the asset’s market cap and supply since the cryptocurrency traded below $4,000.
Then, an over 100% increase in market cap appears to have sent Bitcoin soaring. Prior to the pump, pulling Tether from the market led to Bitcoin’s collapse to its bear market bottom.
Related Reading | Early Bitcoin Investor Sees Parallels Between Now And 2016 Bull Breakout
Clearly, there’s a correlation between the crypto asset pump and dumping, and how much Tether is free-flowing in