How much influence Tether has on crypto – fiat bond?
CEO of Kraken, Jesse Powell recently spoke, in a conversation with TD Ameritrade Network, about the existing problems the crypto industry is encountering, as well as potential factors that can affect further paths. In the last year, as Powell pointed, the huge amount of fiat money has been found on crypto exchanges. It seems as Kraken CEO thinks that this phenomenon is directly related to the growing stock of stablecoin Tether. Powell further dismisses possible risks, uncertainty, and suspicion that Tether could print USDT to increase the price of Bitcoin.
Jesse Powell also pointed out that he possesses an inner knowledge of all events in Tether. At the moment when the Tether offer was on the rise, the supply of dollars on Kraken was the same in parallel, as on other exchanges. When Tether prints, the vast amount of US dollars goes into the exchange, and it’s not just that stablecoin on the blockchain. From this reason, we had the opportunity to notice the huge inflows of the fiat currency.
Kraken CEO believes that what is happening in Tether is only a clear reflection of what is happening at the level of the banking system with all exchanges
In a given interview, Jesse Powell saw Tether as a small part of the total supply between all existing exchanges. Not everything is in the hands of Tether. Printing this stablecoin keeps the dollar in the system. New dollars are coming, and they increase the price, sometimes even 10% a day, but also bring new users.
Tether is not behind the recent rise in Bitcoin prices. It is evident that traditional investors are interested in Bitcoin. On the other hand, there is still no real interest in altcoins, for what Kraken CEO, Powell thinks is a shame. Investment capital could provide Tether printing and maintaining parity with a fiat currency, in this case, a dollar.
Bitcoin returns to its dominant position along with a continually rising price. It keeps the entire crypto palette in green color, and if this week has had the blist of a swing.
At this point, Bitcoin and the rest of the market are in green with the leading currency at $ 11,349. Bitcoin has experienced an increase of 12.81 percent in the last 24 hours. However, tomorrow is uncertain, as always. Bitcoin could significantly increase or significantly drop below 10k.