Bitcoin Forum

I have been curious lately why is bitcoin yet to cross all time high of last bull run with the immense amount of stable coin that are minted on tether USDT and other stable coins.
Unlike the last bull run, tether capitalization wasn't this much and Bitcoin was able to get to 20k, now it seems so hard to get to $15k per btc. Just recently, yearn finance has been making the news of outperforming btc, is this some sort of manipulation with the little supply?

I also noticed that people rushed to buy bitcoin whenever large amounts of tether is minted.

Bitcoin's value isn't affected by minting stablecoins(even there's a lot that are minted) like USDT. In fact, these stablecoins are just used by traders/investors to avoid loss from risky times that might brought by the volatibility of bitcoin.

I also does it everytime bitcoin went way higher, exchanging bitcoin fractions to USDT.
Therefore, even there are huge minted tether, it won't affect bitcoin's value as it won't affect the chance of bitcoin to cross new all time high.

Remember that the biggest factor that affects bitcoin's value is the law of demand of supply. If someone is willing to buy it on this price(which is the lowest sell price) then it will be it's current value. If there are lots of demand even if its price is that high, expect it's price to go higher.  And that could lead on achieving new all time high value of bitcoin (if there was a continuous demand for it).

It is quite too soon to be curious on Bitcoin reaching or exceeding the ATH of last bull run, halving was just months back and remember in 2016 it didn't just spring up as fast to the ATH it was then by late 2017 that Bitcoin went from $5.600 to $20.089 in just four
weeks for this reason all sort of curiosity should be at ease.

Stable coins are created and minted for many purposes and not only to help price of bitcoin.

Stable coins can be used to buy many coins or tokens on the market, from bitcoin to top altcoins and shit altcoins or shit tokens.

Stable coins are risky assets because they can be frozen by governments even you own it in your own wallets.

Can you put the link of the news here?

yearn.finance  (https://coinmarketcap.com/currencies/yearn-finance/) may have a higher price than bitcoin but it does not mean it has outperformed bitcoin. What's you basis on saying that? can you please look at the supply of these two coins and compare it?

here, check again.

https://coinmarketcap.com/currencies/yearn-finance/
https://coinmarketcap.com/currencies/bitcoin/

Bitcoin is beyond any manipulation with its marketcap, but whales can try but the direct effect is not really getting significant. You do not have to bother about bitcoin price reaching all time high, the time is coming. It took bitcoin a long time at a price above $7000 to increase tona price above $11000. What I know is that bitcoin price will increase and still reach all time high as the rate of adoption will increase. And this has nothing to do with the supply.

I will agree with this point, it's all about what price buyers are ready to buy btc, but why isn't there higher purchasing power at this point, are they afraid?


From what I have understood about halving, it has nothing with to do with bitcoin price but a mere hype and speculation by traders and investors. They were so many factors that contributed to the last bull run, the ICO trend and so many fomo without knowing what btc is all about. Many never believe it would have crashed that way.
Beside, there is a way hashing power is distributed to miners that's always beneficial to their income when bitcoin price fall. When small miners pull out, the big players know their way out.

A lot of factors affect this, and the very important thing is that many big players make big profits wherever Bitcoin and the whole market goes.
Short / long options play a big role in this, because I think that whales can easily become bulls, but also bears at the same time 🙃

Because of the number of supporters and investors making earning in bitcoin.

Previously the market price of the bitcoin falls down on the month of March this is because one of the whales pulled out all of its an investment many people tell that this is because of the pandemic outbreak coronavirus. Right now the market price of the bitcoin is continuously pumping because there are a lot of people discover the possible income with this coin and also they want to earn too also large names in the industry are making an investment in it.

There is a chance that if the market price of the bitcoin will reach the 20k mark it will fall down immediately because of the whales pulling out an investment again.

I'm don't want to defend stablecoins and I wouldn't mind if they didn't exist. No one knows if 13 Billion USDT are backed by assets or not since Tether is not providing adequate data. What I'm reaching as a conclusion though is that Tether probably does not help the price of Bitcoin this much as some critics are claiming.

Back in 2017 Tether was once again blamed for printing and boosting Bitcoin's price. We had studies upon studies, articles spreading fud on market manipulation by Tether, and how the price was rising when Tether was printing. What is happening most of the time is that Tether is printing USDT after Bitcoin's price begins rising and not the opposite. Tether CEO Paolo Ardonio explained (link (https://decrypt.co/31581/why-tether-has-printed-5-billion-usdt-this-year)): "I believe that Tether is absorbing part of the cash wealth that is sitting in cash in bank accounts on many other exchanges".

Perhaps this means that exchanges are buying Tether and offloading fiat?

In 2017 Tether was accused of pushing the price of Bitcoin to $20,000 by printing endlessly. If you look at the numbers they had 1 billion USDT at that point and more than 10 billion currently. I'm sure that every new study should take into consideration the whole price movement and not just a short-term of a few weeks.

Not 100% sure if that's the case with stablecoins as well, but let's do a little economics recap. Let's take EUR and USD. Say there are a trillion EUR in circulation and two trillion USD. If suddenly the EUR in circulation doubles, it loses power against USD.

USDT, TUSD and all the other stablecoins (especially those that we suspect aren't really 100% backed in fiat) act the same way the mechanism above works. In other words, if I take it logically, I think the more stablecoins there are printed, the more power BTC earns.

Now there's one question that remains standing: how do we know if all fiat stablecoins are backed in real fiat? Well, we don't. That is why this calculus probably varies a lot.

From the beginning of this thread is here? I mean nobody suggests yet to move this thread to another section. The topic is not related to trading discussion or something like that? If so then this topic should be move to the Trading Discussion . I can not see anything in the OP to post in this Beginners & Help section.

You might be under the impression of having stablecoins in the market will automatically push the price up for Bitcoin, well it doesn't. What you see in the media or for any reason why you believe in that way is all just reasons of people connecting everything to the price movement of Bitcoin, that's how news works in our market where it tries to influence you on everything but the truth is it won't really have any influence if you don't believe them in the first place. Just look at the chart and you will see why Bitcoin is having a hard time going up and that is because there is a lack of volume needed to do so. Yes the price of Bitcoin has increase but there is no volume backing it up making it more harder to push on higher prices.

There is a simple explanation because Bitcoin's price didn't correlate any, Bitcoin has a principle of price growth by itself. The demand and the supply make Bitcoin will grow up or either down the price. Another factor is the price manipulation by whales, they also have an impact on the Bitcoin price movement in the market.

However, it won't help the Bitcoin price growth because IMO, these stable coins are the shelter of traders in managing the volatility in the crypto market including the Bitcoin pairs to trade and they used stable coins to help from stopping lose when there is a significant downfall of the price, it really helps nothing in the price growth of Bitcoin.

Though we have noticed that Bitcoin's market demand is increasing but it doesn't mean that we instantly reach $12k. Nah, it takes time and the volume is not enough to push the market that far because there are also a lot of people selling their Bitcoin at a low price. This is also a factor that we can't easily move that high but have to keep at the same level.

TBH, I'm not seeing $20k can be easily to achieve this year...I know some will disagree me but the market sentiment and considering also the market growth, we are still far from it even though we have that volatility thing. But I know we can see it back, probably next year as the global economic growth will slowly recover and people have their money to invest in bitcoin again after selling it during the pandemic.

Having fear and having no demand for it could be seen as something close to each other, but it isn't also the entire point of having demand for it. Some are just bidding their time, some are hoping for it to go down before buying, there are countless reasons out there that can be used to say as to why it hasn't crossed above 20k, and really, there's no point in discussing them since even if you do, it ultimately points out to the law of demand and supply.

It technically has, mostly because supply is being limited with each halving, meaning that if demand increases, price would naturally increase since the supply really isn't keeping up with the demand. Sure, most of investors don't probably even know what the halving is, and is just thinking of it as hype, but it still has significant effects on how the market would move. It is also true that there are different factors that contribute to a Bitcoin bull run though.

the main use case of stable coins such as Tether is for shitcoin trading and the more shitcoins that are created and traded the more stable coins must be printed to satisfy the need of altcoin pump and dumpers and the sheep that fall into their trap. there are currently nearly 10k shitcoins in existence with about 6.5k of them being actively traded on major exchanges with total volume of more than $100 billion on daily basis.

if you compare Tether total circulating supply of today with the number of shitcoins with the same numbers in another year like 2016 you can clearly see how the growth in number of shitcoins and the volume justifies the Tether supply.
you can also compare the total shitcoin volume versus Tether with total bitcoin volume versus Tether and also compare this last one with total bitcoin volume versus fiat and you can see that only 2 or 3 % of bitcoin volume is in Tether and the rest is in fiat whereas the rest is coming from shitcoin trades.