Bitcoin (BTC) Set For $4,500 With Tether (USDT) Reserve Doubts

Dalmas Ngetich

Last Updated: June 11, 2024 9:14 pm

2 mins read

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Bitcoin prices stable and bullish
Suspicion around Tether reserves will likely benefit Bitcoin
Participation levels low but could increase as demand picks up

Tether is making headlines thanks to their latest update touching on their reserves. While Bitcoin prices are unresponsive, it is likely that BTC will react as investors get edgy liquidating their USDT.

Bitcoin Price Analysis

Fundamentals

By rolling a service with the express purpose of sheltering crypto traders during times of uncertainty, investors as well as traders expect better from Tether. On many occasions, the state of its liquidity has been questioned because it states that it is a stable coin pegged to fiat. However, what is worrisome is the latest beguiling update where the firm, while acting as a crypto haven, appears to be diversifying its reserves and acting like a trusted third party or a bank.

In reality, the stable coin operates in a fragile ecosystem and drawing its value as an IOU or a debt. The assurance is just because every USDT holder can redeem each currency for a dollar or Euro. Questions are now directed at Tether’s ability as an issuing firm to redeem every coin in circulation for fiat. The situation has been made worse given the firm’s association with banks with dubious and patch track records, the lack of bank audit and their association with BitFinex subpoenaed by the DoJ that they USDT to fraudulently drive crypto asset up during the last bull leg of late 2017.

Candlestick Arrangements

Whenever there are concerns about Tether’s operation and hard questions asked about USDT pegging, Bitcoin tends to benefit. Back in Oct 15 2018, prices spiked when it emerged that Tether had bank related troubles.

At the time of press, Bitcoin (BTC) is dangling and ready to slide. It is immune to buyer’s stimulation, and even with optimism around the future, liquidation is on. We are yet to record sharp drops that reflect losses of Feb 24 neither have seen spikes confirming bulls of Feb 18 and Mar 5.

However, what is visible is a consolidation inside Mar 5 high low as prices trend above $3,500. From an effort versus results point of view, buyers have the upper hand.

Even with this calmness, every dip is a buying opportunity for risk-off traders aiming at $4,500. On the other hand, liquidation below $3,500 cancels this projection as bears aim at $3,000 and $1,800.

Technical Indicators

Our analysis anchors on Mar 5 double bar bull reversal pattern. Complete with average volumes—7.6k– but holding recent high lows, any sharp gain or loss driving prices above $4,000 or $3,700 with high trade volumes above 10k of Mar 5 or 36k of Feb 24 confirms gains of Feb 18 or sell off of mid-Nov 2018.

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.