Will $102M USDT Burn end Bitcoin Rally?
Tether has performed one of its biggest USDT burns ever. It was announced that 102.155.590 USDT was first withdrawn and then destroyed.
Tether’s USDT burning is normal in the cryptocurrency market. As mentioned before, these transactions have a direct relationship with the price of Bitcoin. Rally predictions show an accuracy of 70% depending on the price of Bitcoin. But it is uncertain how much this will affect the market when Tether approves the USDT burning process.
Largest USDT Burn Ever
Yesterday evening (February 5, 2020), Whale Alert (@whale_alert) twitter account underlined that the burning of 102.155.590 USDT is the biggest burning activity ever. Yakf after a while confirmed Bitfinex’s CTO in Paolo Ardoino. Announcements have been made about this burning from Tether’s official social media channels.
Coming back to the Tether front, this size of burn was very rare. Since the beginning of 2020, the number of these burns has increased. On January 20, Tether surprised many people with a $64.6 million USDT burn. However, the source of this burning has not yet been reached. Whether the burnings are done because of a request or a pool of individual redemptions is uncertain.
Rally Continues in Crypto Money Markets!
The burning of $102M worth of USDT is big enough to cause great complexity in the market. However, this development does not seem to have had a major impact on the cryptocurrency markets. Leading cryptocurrency, Bitcoin, climbed 4% as of February 6, 2020. Looking at other altcoins, Ethereum saw a 10% rise. Generally speaking, token burning is on the contrary side of the expectations in 2020.
Cryptocurrency analysts argue that stablecoins, which are preparing to enter the market in 2020, have a market of $6 billion. This includes not only USDT, but also USD Coin (USDC), Gemini Dollar (GUSD), Paxos Standard (PAX), DAI and many other stablecoins. However, Tether’s final burning process has not created an optimistic atmosphere in terms of money to enter the market. We will wait and see what developments will unfold in the coming days.
Investment information, comments and recommendations contained herein are not included in the scope of investment advisory. Therefore, making an investment decision based solely on the information and comments contained herein may not produce results that are in line with your expectations.