USDT-Bitcoin Relationship Means BTC May Explode Over the Weekend

Dalmas Ngetich

Last Updated: June 11, 2024 1:45 pm

2 mins read

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Bitcoin (BTC) consolidates, down 4.3 percent
$100 million worth of USDT minted, bullish for BTC

There is a correlation between the timing of USDT minting and BTC price expansion. Because of this, critics maintain that USDT is a tool for price manipulation. Meanwhile, with BTC shaky and $100 million more worth of USDT printed, prices stand to recover.

Bitcoin Price Analysis

Fundamentals

The performance of BTC in the first half of the year is nothing but outstanding. Accompanying renewed interest (or fear) in future prices of cryptocurrency and Bitcoin is often a direct correlation with Tether (USDT).

USDT, minted by Tether Limited- a subsidiary of iFinex, is a safe haven. That is, during times of extreme price volatility, traders and Bitcoin holders tend to flock to the coin either in anticipation of price expansion.

Conversely, traders tend to liquidate the stablecoin when prices of digital assets are slumping. It is this close correlation between BTC prices and USDT in circulation that traders are keenly watching.

Not agreeing with allegations that the stablecoin is used to manipulate prices, Jesse Powell, the CEO of Kraken, explained that the expansion of USDT in recent days is because of the growth of USD supply. Backing Tether Limited, he said that the same trend is visible in Kraken. Whereas more USD flood the market, the value of BTC tends to expand.

Therefore, because of the latest minting of $100 million USDT by Tether Treasury, it is highly likely that BTC prices will correct higher like in previous cases. Add that to the safe haven status of the asset in light of increasing uncertainty and possible fund rate cuts, BTC bulls are at a vantage position.

Candlestick Arrangements

At the time of press, BTC is shaky and printing lower lows. Technically, BTC is consolidating against the USD in a bullish breakout trade. From previous BTC/USD trade plans, it is vital that bulls maintain prices above $9,500.

Failure could see BTC prices slide to $7,500 or even $5,500 in a massive correction as price action reprice the asset’s price driving it to equilibrium.

All the same, sentiment is bullish. Besides, with influential fundamental factors, buyers are at a pole position to snap back to trend. However, for better bullish signals, buyers will be in the driving seat once there is a close above $14,000 complete with high trading volumes exceeding those of June 26.

Technical Indicators

Mentioned above, June 26 leads this trade plan. Over-extended and closing above the upper Bollinger Bands, it has high participation of 82k. As such, any close above $14,000 or liquidation below $9,500 defining the short-to-medium trend of Bitcoin prices ought to be with high trading volumes preferably exceeding 82k. That will open doors for $18,000 or in the worst-case scenario, give bears a leeway for $5,500.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

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.