Current Tether Supply Suggests Bitcoin Price Is Correcting to $20,000
Horus Hughes's original article for cointelegraph.com reduced by 41%
Bitcoin price charting on a longer timeframe, market structure and the issuance of 1 billion Tether so far this year are making crypto and equities analyst FilbFilb incredibly bullish on BTC/USD in the run up to the 2020 halving. As discussed previously, there is a noticeable lag between Tether issuance and Bitcoin's corresponding price action. By starting at Tether's market cap bottom and comparing this against the time it took Bitcoin to reach its 2018 bottom, FilbFilb's notes that there is an approximately 32-day delay between Tether and Bitcoin's price action.
When applied to Tether's current market cap of $4.34 billion, the model suggests that the price of Bitcoin should be somewhere around $20,000. If Bitcoin's market cap continues to grow, the formula and analysis will require adjustment as the current 1 billion Tether issuance's impact on a $70 billion Bitcoin market cap will have a different impact on a larger or smaller Bitcoin market cap. Ultimately, what is worth noting is that there is a statistically significant correlation between Bitcoin price and Tether's market cap.
As Cointelegraph reported several weeks ago, Digital asset research firm Delphi Digital found that the current macroeconomic landscape is creating the "Perfect storm" to ignite Bitcoin price appreciation.
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Summarised crypto news.