Tether: the 16th largest holder of US Treasuries

[Kemarit]

Saw such an interesting chart yesterday that shows: "Is there a correlation between printing USDT on the TRON blockchain and the average price of BTC."

I saw mentioned the theory that minting USDT impacts the BTC price.
If true, how would it work?

It simply goes like this, Tether minted USDT out of thin air, billions->investors buy them->then buy Bitcoin pushing the price higher. At least this is one theory of out the many and there are speculators who think that this is what's happening in the market right now as we have seen a push above $73,000 new all time high for Bitcoin.

Also there is a question on how Tether is doing this as we have been suspected that they are running on fractional reserves, a (mal)practice by many big banks in America.

[Peter90]

It simply goes like this, Tether minted USDT out of thin air, billions->investors buy them->then buy Bitcoin pushing the price higher.

Thanks Kemarit
that theory is not very convincing though...

a) "Tether mint USDT without backing": are there any specific signs of that?
I don't ask for proves, but at least specific elements?

b) "investors buy USDT -> then buy Bitcoin"
Why do investors need to buy USDT in order to buy BTC? Why don't they buy directly BTC?


Or do you mean, Tether buys BTC? with the profits from selling unbacked USDT?

According to the last attestation BTC represents 2,9% of Tether's reserves

3 months before BTC represented 1,9% of Tether's reserves

So, is that 1% enough for moving substantially the BTC price?

[NikeFit_7777]

It simply goes like this, Tether minted USDT out of thin air, billions->investors buy them->then buy Bitcoin pushing the price higher. At least this is one theory of out the many and there are speculators who think that this is what's happening in the market right now as we have seen a push above $73,000 new all time high for Bitcoin.
Also there is a question on how Tether is doing this as we have been suspected that they are running on fractional reserves, a (mal)practice by many big banks in America.

At any moment = they can be asked for their actions. I think the outcome is clear to everyone. This just shows once again that it is not worth keeping all your savings in one basket. Don't forget to diversify. I wonder how they'll answer a question along the lines of, "Why did you print 10 million on such and such a day." Can you imagine the excuses? And I think that except for excuses, there will be no clear + precise answer to this question. In fact, I wouldn't be surprised at all, to be honest. 

Interesting news: "there's a 7% chance of a Teether Bankruptcy on the polymarket."

[MrSpasybo]

It simply goes like this, Tether minted USDT out of thin air, billions->investors buy them->then buy Bitcoin pushing the price higher. At least this is one theory of out the many and there are speculators who think that this is what's happening in the market right now as we have seen a push above $73,000 new all time high for Bitcoin.

Also there is a question on how Tether is doing this as we have been suspected that they are running on fractional reserves, a (mal)practice by many big banks in America.

I think Tether's minting of more USDT is positive for BTC and the market because it shows that more money is flowing into the crypto market through stablecoins. As the cap of stablecoins increases, the buying pressure on crypto will increase and drive up the price. Stablecoins are like the lifeblood of the market, the more stablecoins there are and the more actively they are moved, the more the market will develop.

What you mentioned about Tether minting USDT out of thin air to pump the BTC price is probably a story of the past, in 2017. Now, it has become more transparent and no one has enough evidence to accuse Tether of this crime. So, I still choose to trust Tether and USDT so that I can focus my mind on the investment process instead of being suspicious