A trader indicates a surprising correlation between Bitcoin and Tether

Tether (USDT) is one of the most popular stable coins.

It is used as the equivalent of the US dollar (USD) when it comes to cryptocurrency trading. Due to its constant demand, the stable coin is issued periodically by Tether Limited.

Bitcoin (BTC) down, Tether (USDT) up

‘Bitcoin Jack’ demonstrates two rankings – one with the price of Bitcoin (BTC), and the other shows the market dominance of Tether. It is obvious that the periods of impressive growth of Bitcoin correlate with the decline of the USDT market.

The trader also demonstrates two periods when this correlation is ” obvious “. These two examples are Q1 2019 (Bitcoin rose and Tether’s dominance fell) and Bitcoin’s ongoing bear market (BTC), with the situation being the opposite for Tether (USDT).

This correlation allowed Bitcoin Jack to reject the idea that the USDT was sought after by traders willing to sell their bitcoins (BTC). Instead, the USDT appears as “new money” for the crypto market.

USDT – an asset of many blockchain networks

According to this model, some amount of USDT falls into the ” deviation “. Bitcoin Jack calls these coins “side money.”

Tether (USDT) is a stable coin that is issued on many platforms. Initially, it was issued only on Omni Layer (based on Bitcoin platform), but Ethereum (ERC-20 Tether) and Tron (TRC-20 Tether) joined the list.

Recently, Justin Sun, founder of the Tron Foundation, demonstrated that the Tron-based version of Tether is rapidly increasing its supply:

In addition, USDT is issued to the Eos ( EOS ) and Algorand (ALGO) blockchains, as well as the Liquid Bitcoin side chain.