{"id":327006,"date":"2021-08-18T15:20:03","date_gmt":"2021-08-18T12:20:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-bulls-at-risk-tether-growth-rate-flatlines-despite-market-cap-crossing-64b\/"},"modified":"2021-08-18T15:20:03","modified_gmt":"2021-08-18T12:20:03","slug":"bitcoin-bulls-at-risk-tether-growth-rate-flatlines-despite-market-cap-crossing-64b","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-bulls-at-risk-tether-growth-rate-flatlines-despite-market-cap-crossing-64b\/","title":{"rendered":"# Bitcoin bulls at risk? Tether growth rate flatlines despite market cap crossing $64B"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40c4818dd5b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40c4818dd5b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-bulls-at-risk-tether-growth-rate-flatlines-despite-market-cap-crossing-64b\/#Signaling_crypto_demand\" >Signaling crypto demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-bulls-at-risk-tether-growth-rate-flatlines-despite-market-cap-crossing-64b\/#Commercial_holdings\" >Commercial holdings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-bulls-at-risk-tether-growth-rate-flatlines-despite-market-cap-crossing-64b\/#Regulation_watch\" >Regulation watch<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin bulls at risk? Tether growth rate flatlines despite market cap crossing $64B <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Tether Holdings Ltd, the issuer of the largest stablecoin, Tether (USDT), reported that its total market capitalization had crossed $64 billion for the first time in history.<\/p>\n<p>The company called the event a \u201cmilestone,\u201d adding that it is another indication of the cryptocurrency market\u2019s \u201ccontinued trust and confidence\u201d in its stablecoin.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Tether\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USDt&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$USDt<\/a> market cap hits $64B! <\/p>\n<p>A new milestone reached and another indication of the market\u2019s continued trust and confidence in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Tether?src=hash&amp;ref_src=twsrc%5Etfw\">#Tether<\/a> ! <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/t85i6e6UQt\">pic.twitter.com\/t85i6e6UQt<\/a><\/p>\n<p>\u2014 Tether (@Tether_to) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Tether_to\/status\/1427375297729531909?ref_src=twsrc%5Etfw\">August 16, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>In detail, Tether\u2019s business model revolves around providing digitized dollars to cryptocurrency traders and investors. In doing so, the company offers them a way to park their volatile digital assets into USDT, a digital asset that maintains a one-to-one peg to the United States dollar.<\/p>\n<p>As a result, Tether assists crypto traders and investors cut through the hassle of transferring their digital asset sale proceeds to a bank account.<\/p>\n<p>The company\u2019s business model has secured itself in the crypto industry, insomuch that trades between Bitcoin (BTC) and USDT are typically <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.kaiko.com\/tether-vs-usd-is-a-dollar-a-dollar-when-it-comes-to-trading-4632380f4284\">twice<\/a>\u00a0as frequent as trades\u00a0between Bitcoin and the U.S. dollar.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Signaling_crypto_demand\"><\/span>Signaling crypto demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tether officials have earlier clarified that its fresh USDT issuances take place to meet orders from customers. <\/p>\n<p>Therefore, a rising USDT market cap indicates that traders and investors may want to purchase the stablecoin and deploy it to purchase digital assets such as Bitcoin and Ether (ETH) and\/or put them into yield farming contracts to earn annualized returns.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">     47,073,663 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/USDT?src=hash&amp;ref_src=twsrc%5Etfw\">#USDT<\/a> (47,073,663 USD) transferred from Compound Tether to unknown wallet<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/FC5ZjNLnRf\">https:\/\/t.co\/FC5ZjNLnRf<\/a><\/p>\n<p>\u2014 Whale Alert (@whale_alert) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/whale_alert\/status\/1427858181179514887?ref_src=twsrc%5Etfw\">August 18, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>A rising Tether issuance rate typically coincides with spikes in the Bitcoin market. For instance, the total market cap of USDT was around $4 billion in March 2020 but rose to over $61 billion in May 2021. The same period witnessed Bitcoin rising from below $4,000 to almost $65,000.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/4376bdfb-6730-4466-84ea-dac57912a22f.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin price versus USDT issuance. Source: LongHash<\/em><\/figcaption><\/figure>\n<p>Moreover, Bitcoin\u2019s correction from $65,000 to $30,000 coincided with a flat Tether market cap. <\/p>\n<p>Later, BTC recovered on new endorsements from Tesla\u2019s Elon Musk and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>\u2019s Jack Dorsey and fears of higher inflation led by the U.S. Federal Reserve\u2019s loose monetary policies.<\/p>\n<p>Meanwhile, Glassnode data reports that 20% of Tether\u2019s supply is currently locked in decentralized finance projects\u2019 smart contracts.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/7253b615-6566-4ced-9648-f96954fa2bae.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>USDT supply in smart contracts (pink) vs. rival USDC (green). Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>\u201cI foresee Tether continuing to virtually \u2018print\u2019 (mint) more and more Tether as the crypto industry continues to grow,\u201d Gustavo De La Torre, business development director at N.exchange, said, hinting at a potential market boom that may follow in the sessions ahead.<\/p>\n<blockquote><p>\u201cThe growing supply indicates that the crypto ecosystem believes in its own system, carving out a means to peg trading pairs with an asset other than the US dollar.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Commercial_holdings\"><\/span>Commercial holdings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In June, JPMorgan Chase analysts noted that Tether\u2019s large commercial paper holdings show that banks are unwilling to take the company\u2019s cash.\u00a0That could be due to the U.S. Office of the Comptroller of the Currency\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.occ.gov\/news-issuances\/news-releases\/2021\/nr-occ-2021-2.html\">guideline<\/a> that orders banks to work with only stablecoin issuers whose coins are 100% backed by reserves.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/ad5943c9-fec9-42bc-96f8-8543f9bd1249.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Tether reserve allocations from May report. Source: Tether<\/em><\/figcaption><\/figure>\n<p>The banking giant added that providing Tether banking services would \u201clikely raise reputational risk concerns\u201d for financial institutions. However, Stuart Hoegner, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> counsel at Tether, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/342966af-98dc-4b48-b997-38c00804270a\">rubbished<\/a> JPMorgan\u2019s outlook, stating:<\/p>\n<blockquote><p>\u201cWith respect to reputation, we believe we are seeing the opposite: more and more counterparties are comfortable with Tether and our transparency initiatives and are keen to work with us.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Regulation_watch\"><\/span>Regulation watch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tether\u2019s $64-billion \u201cmilestone\u201d also <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears as stablecoins, in general, attract more intense scrutiny from regulators.<\/p>\n<p>The U.S. Treasury Department, the Securities and Exchange Commission and the Federal Reserve have expressed their concerns about the potential of dollar-pegged digital assets to cause global financial instability and obscure transactions associated with money launderers and other online criminals.<\/p>\n<p><strong><em>Related:\u00a0SEC Chairman says cryptocurrency falls under security-based swaps rules<\/em><\/strong><\/p>\n<p>But to De La Torre, crypto traders have ignored regulatory threats over stablecoins\u2019 feasibility as a product.\u00a0He said:<\/p>\n<blockquote><p>\u201cShould regulatory pressure heighten, other well regulated stablecoins like USDC may dominate American markets, however, Tether will still be relevant in other regions of the world.\u201d<\/p><\/blockquote>\n<p>Bob Reid, CEO and co-founder of Everest, also highlighted Circle\u2019s USD Coin attempt to mousetrap the U.S. market by\u00a0attempting to get a national banking charter. The executive noted that Tether might follow a similar path to gain legitimacy in the U.S. or be ousted from the country altogether.\u00a0<\/p>\n<p>\u201cTether risks befalling in the same way as Binance, a shunned nomad with half the governments of the world hating them,\u201d he told Cointelegraph.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-bulls-at-risk-tether-growth-rate-flatlines-despite-market-cap-crossing-64b\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin bulls at risk? Tether growth rate flatlines despite market cap crossing $64B &#8221; Tether Holdings Ltd, the issuer of the largest stablecoin, Tether (USDT), reported that its total market capitalization had crossed $64 billion for the first time in history. The company called the event a \u201cmilestone,\u201d adding that it is another indication&#8230;<\/p>\n","protected":false},"author":1,"featured_media":327007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvNWJkMmYyZGQtMTM0Mi00YTg4LTg3NDMtNjExNmQ1N2QwMmVhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74937,74858,114477,81188,74939,75679,74898,75493,70550,73785,72287,36041],"class_list":["post-327006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin-price","tag-bitcoin-regulation","tag-homeland-security","tag-janet-yellen","tag-market-analysis","tag-market-capitalization","tag-sec","tag-stablecoin","tag-federal-reserve","tag-markets","tag-security","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/327006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=327006"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/327006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/327007"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=327006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=327006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=327006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}