Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.
Tether has been alleged by prominent personalities in the industry for a lot of things, including the pump of 2017. Moreover, Tether was also alleged for not having all USDTs backed, an allegation that came to light after the NYAG’s lawsuit. Not only was all of the Tether not backed by reserves, but some of the reserves were also used to buy Bitcoin, which was also a massive revelation.
More recently, USDT’s market cap skyrocketed by almost 100 million in 67 days, which is staggering. A Twitter user @trueusdprinter tweeted the same.
🎾 TETHER PRINTER 🎾
Just printed $100,000,000 USDT!
Total Supply: $3,320,057,493
— TrueUSD Printer (@trueusdprinter) May 24, 2019
Moreover, the excess of assets over liabilities of USDT ERC20 tokens increased by a massive $16 million in one day. At press time, the excess of assets over liabilities was at $38 million. In addition, the authorized but not issued tokens increased by $59 million, which is a staggering surge of demand for USDT.
A Twitter user @dividebynine tweeted:
Ethereum Tether reserves are at 1M.
Impressive how steady the Excess is ~ $22,777,000 (+/- 900). pic.twitter.com/gCd52R5OPB
— dividebynine (@dividebynine) May 23, 2019
A Twitter user @DigiEconomist, tweeted:
“That explosion in the last two months 😮 Nothing attracts institutional investors more than unredeemable tokens and legal scrutiny”
Another Twitter user @pesuazo, commented:
“That’s one of the reasons why I believe “institutional” money wont come in. They have an uphill battle, they will not bring dollars into a market where someone else prints their own “money” and buys BTC with it. The crypto market has its own “Federal Reserve”.. shame on us”
Subscribe to AMBCrypto’s Newsletter
Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
Subscribe to AMBCrypto’s Newsletter