Kraken CEO Jesse Powell is dismissing fear, uncertainty and doubt on whether the stablecoin company Tether is printing USDT to boost the price of Bitcoin.
In a new interview with TD Ameritrade Network, Powell says his crypto exchange is seeing huge amounts of fiat currency coming in this year, which correlates to the increasing supply of Tether.
“I don’t have inside knowledge of what’s happening at Tether. But I can tell you that historically, when you’ve seen growth in the supply of Tether, we’ve seen growth in the supply of US dollars coming onto Kraken, and other exchanges would report the same. So I think what you’re seeing in Tether is just a very transparent reflection of what is happening at the banking system level with all the exchanges. When new Tether is being printed, 99% of the time tons of US dollars are coming into the exchanges as well, and it’s not just being represented as Tether on the blockchain. Recently, we’ve had massive inflows of fiat currency, so I believe that the Tether prints are a result of new fiat coming in…
I think Tether is actually a small part of the total fiat supply among all of the exchanges. So I don’t think Tether alone is doing it. And I think the Tether that’s being printed is mostly reflective of actual dollars coming into the system. So I think that you could just look at is as new dollars coming in as what is driving up the price. It’s new users coming in. There are days where you see the price going up 10% a day. You can bet all the exchanges are onboarding 50,000 to 100,000 new users a day. That is what is driving up the price. It’s the huge retail demand and all the media attention on it. It’s not Tether.”
Right now, Bitcoin is rising in price and dominance, with the rest of the crypto market mostly in the red. BTC is up 2.29% at $10,818 according to COIN360. Ethereum is down 1.5% at $290.30, XRP is down 1.86% at $0.3992 and Litecoin is down 4.13% at $117.95.
According to crypto analyst Alex Krüger, Bitcoin may have dodged a bullet with its rise above $10,600.
Notice how similar the $BTC price action during the last two days has been. High odds market will re-test $10K and attempt to break through again. Give it time. Above $10,600 short term downtrend invalidated. pic.twitter.com/So4c9vvCUy
— Alex Krüger (@krugermacro) July 1, 2019
With Bitcoin swinging from a high of $13,770 to a low of $9,936 within the past seven days, crypto analysts at large are searching for signs of where BTC is heading next and whether altcoins are ready to pop.
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