NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: FTX Recovery Trust Set To Disburse $1.6 Billion By Month-End, FTT Price Skyrockets
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: FTX Recovery Trust Set To Disburse $1.6 Billion By Month-End, FTT Price Skyrockets

Nearly Every Past Tether Burn Preceded a Bitcoin Crash. It Just Happened Again

Nick Chong
Nick Chong
1 year ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Aside from Bitcoin, the most talked-about cryptocurrency over the past few weeks has seemingly been Tether.

The fourth-largest cryptocurrency by market capitalization, the stablecoin, which trades on markets as USDT, has become increasingly important to the crypto market. So much so that just the other day, data shared by Unfolded suggested that Tether’s market capitalization hit $7 billion, or approximately 3.4% of the entire industry’s value.

It appears that growth is slowing, though. In fact, Whale Alert, a Twitter bot tracking large Bitcoin and other cryptocurrency transactions, recently revealed that $220 million worth of the cryptocurrency was burned by The Tether Treasury’s wallet.

🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 220,000,000 #USDT (220,210,301 USD) burned at Tether Treasury

Tx: https://t.co/gH5R6JSiZm

— Whale Alert (@whale_alert) April 22, 2020

Paolo Ardoino, the CTO of Tether and Bitfinex, corroborated the burn, explaining in a tweet that the company had “reduced” the size of the USDT Treasury and adding that the coins burned were “authorized but not issued” to the market.

Massive Burn Suggests Bitcoin May Dump

Although Bitcoin hasn’t reacted to this move, flatlining ever since it hit $7,100 earlier today, Blockstream’s Zack Voell noted that every previous USDT burn (according to Whale Alert) has coincided “at or near pivotal points in the market.”

Most often, his chart indicated, the pivotal points have preceded drops, like when USDT was burned around February 20th, near the top and just weeks prior to the drop to $3,700, or when it was burned in November last year, prior to the 35% drop to $7,000.

 

Should historical precedent hold, that means there’s a good likelihood Bitcoin will reverse lower in the coming days and weeks.

For some perspective, if Bitcoin does what it did last time there was a USDT burn, according to Voell’s chart, it will trade as low as $2,840 by the end of May or the start of June.

Maybe There Is No Relationship

Although the chart above does seem to suggest that Bitcoin is soon to see some weakness, a report found that the issuance of USDT doesn’t have a positive impact on the price of BTC or other cryptocurrencies.  By that same token, burns unlikely were the catalysts for the previous crashes marked in the chart above.

In a note titled “Stable coins don’t inflate crypto markets” and published to economics research blog VOX, Richard K. Lyons and Ganesh Visawanath-Natraj — of UC Berkeley and Warwick Business School, respectively — explained that Tether and other stablecoins don’t naturally push Bitcoin higher.

The core of their argument came down to the two charts seen below, which shows that from August 2017 to November 2019, there was no obvious trend to the prices of Bitcoin and Ethereum in the three weeks after USDT issuances.

BTC and ETH Response to USDT Issuance

In fact, on average over the sampled time frame, Bitcoin trended lower immediately after Tether minted coins.

Again, this may suggest that the seeming correlation between Bitcoin market tops (both local and macro tops) and USDT burns is just spurious.

Photo by Denys Argyriou on Unsplash
Tweet123Share220ShareSend
Nick Chong
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin

Analyst Unveils 3-Month Prediction For Bitcoin, XRP, And Dogecoin – It’s Very Bullish

A pseudonymous crypto analyst, known as Borovik on X, has released a bold set of three-month predictions for some of...

Scott Matherson 4 hours ago
etf-xrp-doge-lancement-explosif-54-millions-echanges

ETF XRP et DOGE : un lancement explosif avec 54 millions $ échangés

Ouverture canon. Les ETF adossés à XRP et DOGE ont enregistré 54 M$ de volumes pour leur première séance. Ce...

guillaumev 6 hours ago
snorter-bot-4-millions-ico

Snorter Bot approche les 4 M$ lors de son ICO, alors que d’importantes mises à jour de l’écosystème sont déployées

Jeudi 18 septembre 2025 – Alors que le trading bot Telegram Snorter Bot Token (SNORT) frôle les 4 millions de...

guillaumev 6 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Ethereum

Institutional Ethereum Staking On The Horizon As Grayscale Prepares Move — Details

Godspower Owie 15 minutes ago
Ethereum

Ethereum Price Will Still Climb Above $5,000 As Long As It Holds This Level

Scott Matherson 1 hour ago
Chainlink

Chainlink Primed For Takeoff: Liquidity Sweep Strengthens Bullish Outlook

Godspower Owie 3 hours ago

Premium Sponsors

Press Releases

  • ドージコイン 今後 の価格予測:ETF発足で新たな成長ステージへ

    ドージコイン 今後...

    9 hours ago
  • リップル 今後の価格予測:現物ETF効果で4ドル到達を狙うXRP

    リップル...

    9 hours ago
  • 仮想通貨プレセール:専門家が次の有望ミームコイン候補を予測

    ...

    9 hours ago
  • 仮想通貨おすすめ:次のブルランでシバイヌを超える成長候補の4トークン

    ...

    9 hours ago
  • 新しい仮想通貨トレーディングボット、エコシステム大型アップグレード前にICOで400万ドル突破目前

    ...

    10 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.