Bitcoin Price Targets Recovery as Tether Releases New Tokens
Speculations are rising that a bitcoin price recovery could be possible as Tether releases 250 million new tokens.
Blockchain information mentions that Tether, the developer of cryptocurrency “stablecoin” USDT also known as Tether, released 250 million new tokens this morning.
USDT, which is valued to USD at a 1-to-1 ratio, acts as a representation for physical dollars on various cryptocurrency exchanges, due to the fact that several trading platforms have trouble acquiring the banking relationships needed to hold fiat currency on behalf of customers. Over the past day, tether’s $4.2 billion in trading volume was second-highest behind bitcoin.
The release of Tether’s new tokens proves that new capital is flowing into the cryptocurrency markets, given that tokens are created when individuals or firms deposit physical dollars into Tether’s reserve bank accounts.
Therefore, the introduction of these tokens could act as a bullish indicator for the bitcoin price, taking into consideration that the owner may hold them for a limitless period of time before selling them.
The release of the new tokens on Monday marks the first relevant Tether release since May 18, when Tether released $250 million in USDT. Days after this, the bitcoin price rose from $8,100 on May 18 to $8,500 on May 21. Yet, that recovery did not last for long, and the bitcoin price lost about $2,300 in the following weeks.
