Either BTC is about to rip higher or the Tether printing correlation has broke down...
Something very interesting is happening right now in crypto land.
The tether printing machine is going brrrrrr and yet bitcoin isn't really budging.
That may not sound like that big of a deal to you, but historically, there has been a very interesting correlation between new tether being created and the price of bitcoin.
Specifically, new tether gets created and shortly after the price of bitcoin takes off.
Check it out:
(Source: ~~~ embed:1305336070939144192/photo/1) twitter metadata:Q29sZUdhcm5lckJUQ3x8aHR0cHM6Ly90d2l0dGVyLmNvbS9Db2xlR2FybmVyQlRDL3N0YXR1cy8xMzA1MzM2MDcwOTM5MTQ0MTkyL3Bob3RvLzEpfA== ~~~
Do you see the correlations there?
So, what does this mean?
Well, if you look at the chart above you can see a very interesting correlation between new tethers being created and the price of bitcoin.
And then if you look the far right side of the chart you see something very interesting...
A massive increase in the supply of tethers, yet bitcoin hasn't really budged, at least not yet.
In fact this latest increase was the largest increase of tether ever...
Hmm... I wonder what that might mean for the price of bitcoin.
More people than ever are hiding out and moving money via tether that want nothing to do with bitcoin so there is that, but that historical pattern is undeniable.
Just based on the above data, I would not be surprised to see bitcoin shoot up in the very near future.
Stay informed my friends.
-Doc
Posted Using LeoFinance
I doubt the correlation has broken down. For now at least, I still think that bullish fiat money flow into Tether is bullish for crypto. That's a huge divergence that I expect will ultimately resolve itself by BTC moving higher. And it looks like a lot higher at that!
It's already started moving no?
The way you put it, combined with these charts makes it feel like tether has inflated the price of bitcoin several times over. Of course I feel like bitcoin has real value and is not overpriced, at least not after such a long bear market, BUT perhaps tether is deciding when we move up and if it prints too hard, we pump too hard and have to suffer through heavy corrections....maybe without tether (or whatever game they play) we'd have pretty slow and steady and sustainable growth with less heavy pullbacks, same overall growth but without all the craziness?
Perhaps. I think another possibility is just that many investors use tether as a USD proxy in the crypto markets. And if a bunch of new tether is created it may mean that a bunch of new fiat money has entered the market and the majority of new money that buys crypto, buys bitcoin.
Yes. I think Tether is used as an onboarding vehicle, most of which goes to BTC, but a lot to other quality crypto, and now a bunch to DeFi too.
Yep, plus you can't discount the amount of tether being used in Asia currently to move money around outside of government controls.
Ahhh I never heard that before, sure hope so!
11000$ is imminent then😄
It seems like this indicates the next major move is up, yes.
Yes, b/c much of the new tether is flowing into smart contract chains. EOS for example has been seeing a massive inflow of USDT recently.
Yep, plus the defi projects, plus it's gained popularity in Asia for people skirting government controls. So, this time may be indeed be different, though I imagine at least some of that new money will find it's way into bitcoin , especially if it starts running.
That's great.
Since BTC is not following 'as it was before', does it means that BTC is more in circulation?
So much money getting parked in Tether. Lots of money sidelined just itching to get in. I wonder what they are waiting for? Probably some combination of COVID economics and the halving event.
I think it actually has a lot to do with Asia how people are moving money using tether to get around governmental controls. So the spike in tethers may be a bit different his time compared with others, but I am sure some of it makes its way into bitcoin, especially if it starts running.
Indeed, we are rehashing that 'capital flight' argument.
I wonder how many billions that accounts for... guess we'll find out!
From what I have read and the lack of an impact on bitcoin thus far, it could be a lot...
Hasn't there been significant controversy regarding Tether over the years? Last I heard, it's not actually fully backed by cash.
Not that that would matter too much, the US dollar is going to have a massive decline in value in the coming year or two. The problem, to my knowledge, is that they misled people. For all we know, this recent increase in minting could just be a money grab before they file for bankruptcy and vanish.
"Stable"coins in general are probably best to be avoided.
How does it work?
It's a scam, has a Remote Access Tool embedded in it with a keylogger, screenshot tool, possibly more functions. Likely steals wallets and then waits for you to enter the decryption password to steal your coins, either that or it's a botnet.
Uses an interesting method of obfuscating the IP addresses it connects to, they're hidden behind pastebin links.
Like so, with contents next to link if they're pulled down or changed later:
193.38.55.4213.226.100.140193.38.55.4213.226.100.140https://pastebin.com/raw/DF8Gikrk https://pastebin.com/raw/UbTZx6kd https://pastebin.com/raw/bfQiiqyv https://pastebin.com/raw/r12wBrC7The person behind this has done it before, previously it was called eTrader but they did a terrible job of hiding the malware and it set off antiviruses.
Whoever made this did not hide it well, they went just far enough to make antiviruses not detect it but it's extremely obvious within less than two minutes of basic manual analysis.
Note: This analysis is of the Mac/Linux download, the Windows download may be far worse.
I've forwarded the info to more serious security researchers, this particular malware should get flagged by antiviruses in the coming month if it wasn't already on their radar.
Thanks for sharing. Scary stuff.
Yeah these scammers get tiring pretty quickly, maybe Hive needs something other than downvotes for dealing with spam.