Is This The Real Reason Behind Crypto’s $200 Billion Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana Prisboom?
Bitcoinbitcoin, ethereum and other major cryptocurrencies BNBbinancecoin, XRPripple, cardanocardano, dogecoindogecoin, polygon and solanasolana have surged higher over the past month – part of a JPMorgan “catastrophic” doomsday scenario that may be just beginning.
Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and successfully navigating the roller coaster of bitcoin and crypto market
Bitcoin price has topped $30,000 per bitcoin for the first time since last June after Coinbase CEO Brian Armstong confirmed a long-awaited bitcoin upgrade and ethereum failure on the brink of its own game-changing update. The broad crypto boom of the past month has been largely attributed to rising expectations that the Federal Reserve will soon ease its program of historic rate hikes.
Now, as traders brace for the latest inflation data that could cause bitcoin, ethereum and crypto price chaos, a closely watched analyst has said there could be another overlooked catalyst behind the latest crypto rally.
It is at the beginning of a bull run that you need updated information the most! Sign up for free now CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market
“Stablecoin tether (USDT) has now reached a market cap of $80 billion, an increase of $13.8 billion,” Markus Thielen, head of research and strategy at Matrixport, wrote in an email, adding that the rise in its market cap is “driven by aggressive coining and issuance on the trontron network,” which accounts for $44 billion in tethers.
“The issuance of USDTs on ethereum amounts to an additional $35 billion, but the spread between USDTs issued on tron and ethereum is now widening considerably. The all-time high in USDT issuances was $82 billion in May 2022, and tether is now only $2 billion away from that.”
Register now for CryptoCodex—A free, daily newsletter for the crypto-curious
“Meanwhile, Circle USDC lost $11.8 billion and Paxos-Binance BUSD lost $9.4 billion. Clearly, these big moves had implications for cryptoassets. Additionally, spot vs. derivatives volume has now dropped to just 11% – this means that for every $11 traded in spot, $100 is traded in derivatives, the lowest ratio since May 2022 and a sign of “pure speculation.”
“Bitcoin’s 10-month high should be confirmation that we are seeing a return of a crypto bull market,” Katharine Wooller, director of Coincover. “Since the start of 2023, the crypto market has faced regular turmoil in the form of regulatory challenges and collapses of crypto companies that indicate broader systemic problems. Yet, despite this, the market continues to perform well against all odds.”
“Higher-than-expected U.S. jobless claims suggest the Federal Reserve may soon halt interest rate hikes, which could benefit risk assets like crypto,” Rachel Lin, CEO of crypto trading platform Synfutures. “Conversely, a higher unemployment rate can signal a looming recession, which negatively affects all assets.”
Follow me on Twitter.
