Tether, is a crypto currency whose value is covered by the US dollar. Since June, the daily trading volume of tether has been over $3 billion, seven percent higher than the volume of ethereum.
Just a few months ago, Ethereum had the second highest daily trading volume at around $3 billion, while Bitcoin’s volume was over $5 billion. According to the current market correction, Bitcoin’s daily trading volume has dropped to $3.4 billion, while Ethereum’s volume has dropped to $1.7 billion.
Tether as an indicator
At pure crypto currency exchanges such as Binance, the world’s second largest crypto exchange behind Coinbase, which does not yet support Fiat currencies, traders mainly use USDT to hedge the value of important crypto currencies such as Bitcoin, Ethereum and other tokens against the US dollar.
The daily trading volume of USDT can be seen as a direct representation of the volatility in the crypto currency market. If the volume of tether is unusually large in a downward trend, it means that traders are selling crypto currencies to USDT, and if the volume of tether in a bull market is unusually large, it means that traders are selling their USDT reserves to purchase more crypto currencies.
Given Tether’s $3 billion daily trading volume and the fact that USDT is the second most traded crypto currency in the market, it can be said that crypto currency holders are buying more USDT as they expect the downward trend to continue.
Bitcoin Bear Market Sits Low
Willy Woo, a prominent crypto enthusiast and investor, said in late May that Bitcoin will slowly fall towards $5,500 due to the lack of volume in the market and the excessively strong bear market. The analyst thinks that Bitcoin will not fall below $5,000, though.
I DON’T NECESSARILY THINK WE’RE GOING TO FALL THROUGH THE 5000S…IT’S NOT A REPEAT, IT’S NOT MT GOX AND WILLYBOT DRIVING THE PRICE UP WITH FAKE ORDERS, WE’RE NOT RECOVERING FROM A FRAUD BUBBLE. TECHNICALLY, $5000 IS A VERY STRONG SUPPORT ZONE.”
Report confirms inventory coverage – but doubts remain
In recent weeks, Tether’s rising volume and activity have prompted investors to express concern about the market situation and USDT’s reliability. This week Washington-based law firm FSS, consisting of three former federal judges and the former director of the FBI, announced USDT’s audit results and noted that billions of dollars had been verified in Tether’s bank accounts, but this report leaves some questions unanswered