This Key Metric Suggests the Crypto Market’s Downturn Will Be Shortlived

If you’ve been on Crypto Twitter at all over the past few months, you’ve likely noticed multiple tweets like the one seen below; stablecoin companies, from Tether to Circle and Paxos, are issuing tens of millions of dollars worth of these digital assets day after day. In fact, according to data from blockchain analytics company Coin Metrics, the value of all U.S. dollar stablecoins (USDT, Binance USD, USD Coin, etc.) is on the verge of passing $8 billion — a metric up by 20% in the past month in itself. Many believe that this trend suggests the crypto market will perform well moving forward.

Why It’s Big For Crypto

As to why this is bullish, Charles Edwards, a digital asset manager, noted earlier this year that “major changes in Tether’s market capitalization have led Bitcoin’s price over the last 1.5 years.” For instance, prior to the nearly 50% crash in November 2018 that saw BTC plunge from $6,000 to $3,150 and the rest of the crypto market fall even further, the amount of USDT circulating fell by hundreds of millions; also, prior to the majority of 2019’s 330% rally was the printing of hundreds of millions worth of the coins. Read More...

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