2020 is an eventful year, not only on the global scale but also to the crypto world. First, we witnessed bitcoin getting its price cut in half in March, then we welcomed the third halving whose impact has not yet been shown. But this year, bitcoin doesn’t get to hog the limelight - Ethereum is about to release its 2.0 version, while Tether has more than doubled its market cap from $4 billion to $9.41 billion in the past 3 months.
According to the data of Coincodex.com, the total market cap of Tether (USDT) stayed at around $4 billion since July 2019. Then on March 18, a few days after the great crash of bitcoin, Tether picked up its pace in minting new coins. By June 8, the market cap of Tether had reached $9.41 billion, increasing by 129%. Such a significant boost naturally aroused heated debates about the cryptocurrency market and a majority of investors believe the boost of stablecoins’ supply is a signal for the long-waited Bitcoin bull.
Bloomberg: "Bitcoin Appreciation Tethered to Stable Coins. "
Stablecoins are widely used as a de facto form of cash in the cryptocurrency market. Since their market value is pegged to some external reference, they are more “stable” in price compared with Bitcoin. Compared with fiat money, they have the advantages of blockchain digital assets in instantaneous money movement and easier payments, which enable traders to easily convert their stablecoins into fiat money or other cryptocurrencies. Besides, in some countries such as China and Russia where Bitcoin is banned from banking transactions, traders tend to exchange their fiat into stablecoins, hold them, and buy other cryptocurrencies when the right time comes.
In a recent report, Bloomberg recognizes the correlation between Tether and Bitcoin’s price movements, stating that “Interest in digital links to the dollar represents the need to transact and store value in the world’s reserve currency without an intermediary. We can’t help but draw parallels to the adoption of paper currencies throughout history as the world today moves rapidly toward digitization.”
Correlation between BTC and USDT. Source: Bloomberg.
With Tether gaining more recognition it deserves, it has the potential to surpass Ethereum and take the No.2 spot in the crypto asset, following behind Bitcoin the crypto king.
The Market is Gearing Up for a Bitcoin Bull
Usually, when the price of Bitcoin goes up, the same amount of Bitcoin requires traders to pay more, so more fiat money would need to flow into the market, thus driving the supply of Tether up. In turn, the increased supply of Tether could foreshadow a rise in Bitcoin’s price.
Many critics consider the new issuance of Tether the result of growing confidence in Bitcoin's price expansion after the halving, as traders in anticipation of a bull market will get prepared to funneling their Tether into Bitcoin. This hypothesis is supported by a survey by Glassnode, in which data showed an increase in Bitcoin whales who flocked to the Bitcoin market since it took a nosedive in March. Besides, despite the setbacks, the market especially top traders is singing bullish for bitcoin, so the increase of Tether supply could be attributed to the boom in new investors in the hope of benefiting from Bitcoin’s rebuilding boom.
Planning Ahead for The Bull Market
Each Tether could be the momentum Bitcoin needs to skyrocket. If we take a look at history, Bitcoin bulls always came a few months after the previous halving events. At the first halving, Bitcoin's price surged from $11 to over $1,100 in one year. As for the second halving, the price soared from $600 to $20,000 by the end of 2017. The same could be applied to the third halving, however, this process might take months to happen, so it is advised to diversify our strategies - be bold while staying safe.
Here are two options worthy of trying while waiting for the bull:
Option 1: A Wallet Designed for Traders and HODLers
You might want to continue to hodl your BTC and wait for the bull market to come after the halving. However, as we don’t know how long it will be until the next bull market, meanwhile you could consider storing your BTC into an interest-bearing wallet, where your deposit could gain up to a 30% annualized interest rate.
The monthly interest is calculated as (S*I/365*30)=MI. S represents the sum of the deposit, I stands for interest, and MI is the monthly interest. If you deposit 10 BTC in your wallet, the monthly interest you would receive is (10*30%/365*30)=0.24 BTC. While most lending platforms require traders to deposit at least 1 BTC, traders can make a deposit starting from 0.05 BTC on Bexplus.
Option 2: Managing Trading with Less Risks
Besides buying more BTC and waiting for the bull market, you could earn additional BTC with leveraged trading, which allows traders to open a leveraged position X times more than their actual capital. By predicting the right trends of Bitcoin's price, traders can earn greater returns within a shorter period of time.
To illustrate, you can open a long position worth 10 BTC at the price of $9,000. With the 100x leverage of Bexplus exchange, you only need to deposit 0.1 BTC as margin. When the price of BTC increases to $9,500, you can close the position and take profit. Your profit would be ($9,500-$9,000)*10 BTC/$9,500=0.526 BTC.
Established in 2017 and headquartered in Hong Kong, Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on BTC, ETH, LTC, EOS, XRP and etc. No spread, no KYC requirements, no deposit fee, Bexplus is trusted by clients worldwide, including the USA, Japan, Iran, and Sudan.
- Demo Account with 10 BTC
To help beginners better get used to leveraged trading, Bexplus provides every user with a demo account upon registration. There are 10 replenishable BTC in the demo account for traders to practice as much as they like. You can also learn to analyze the market and use the tool-kit with the demo account. Besides, you can always trust the 24/7 customer support to help you solve your problems in trading.
- Check the Market at Any Time and Anywhere You Want
Bexplus mobile app ranks in the Top 5 of keyword search results related to bitcoin trading in 56 countries in App Annie. This full-featured app provides you with the same experience when using a computer, only far more convenient. You can check the market, enter or close a trade, or deposit your funds in the interest-bearing wallet wherever you like. Bexplus mobile app has a 24/7 market notification to keep you updated with any huge market movement.
All data and assets can be accessed through all kinds of devices including Windows, Macbook, Android phones, iPhones, and tablets.
- Claim Your 100% Bonus
Double deposits, double profits. Users can get a 100% deposit bonus for every deposit on Bexplus. If you deposit 1 BTC, 2 BTC will be credited to your account, and the profits gained with the bonus are withdrawable. Every user can join the promotion and get up to 10 BTC bonus. Now active users can get 10% off of their transaction fee.
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