According to LongHash, Bitcoin’s price is largely driven by Tether’s price, so Tether is a very good predictor of the Bitcoin price. Although this conclusion does not resonate with the entire crypto community, some Crypto Twitter personalities seem to believe it and consider it as not just a price predictor but as the push behind Bitcoin’s price surge.
Bitcoin started its journey upward at the very start of April and rose from ~$4,000 to almost $14,000 before experiencing a dip to $9,000 recently. A cryptocurrency analyst, Andrew Rennhack says Tether (USDT) has been the force behind Bitcoin’s price gain all along. His conclusion comes from the opinion that Bitcoin is not sound money and so lacks the capability to experience such a price surge by itself.
Not Institutional Investors
There may be several in the crypto space who would disagree with Rennhack, majorly because they believe the rally was driven by the influx of institutional investors into the industry.
As a matter of fact, some analysts say the current bull market is likely to last longer than that of 2017 as it is driven mainly by investors and the general public developing appreciation for cryptocurrency rather than because of the hype that led to 2017 bull run.
Even the choice of Bitcoin as a safe haven for investors due to the lingering U.S-China trade war is not an acceptable explanation for the rally as far as Rennhack is concerned. He says there has been a massive Tether minting exercise that ran concurrently with Bitcoin’s fastest price gains and so is the only explanation for the rally.
What Happens When Bitcoin Hits $100,000
Rennhack’s idea suggests that Bitcoin is solely dependent on Tether for its growth. However, some people like Max Keiser believe Bitcoin will rise to $100,000 and not together with altcoins which Tether is one of.
Keiser has predicted since 2011 that Bitcoin will kill every altcoin on its way to his expected $100,000. Does it mean Keiser is wrong or Tether will thrive along with Bitcoin?