Throughout Tether's history, there are many allegations against the dollar's stable currency – from bitcoin price manipulation to downright fraud. Having said that, Tether's current trading price is $1.01, which indicates that the market recognizes it.
Recently, some people who are skeptical about Bitcoin claim that Bitcoin's recent bull market is based on Tether and the exchange's manipulation of Bitcoin, rather than any real, natural demand.
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On Monday, Jesse Powell, CEO of the crypto asset exchange Kraken, was asked about his views on the subject in an interview with TD Ameritrade Network. Powell said that the so-called bitcoin price manipulation caused by Tether is far from the actual situation.
Powell: Tether issuance is the performance of normal trading activities
When asked if there was a link between Tether's additional issuance and bitcoin price growth in the past few months, Powell pointed out that we can also find this connection through almost every bitcoin exchange using normal bank deposits. .
"I don't know what happened to Tether, but I can tell you that historically, when you see the growth of Tether supply, we can see that Kraken's dollar supply is also growing. Other exchanges will have the same. phenomenon."
Powell added that while bitcoin prices have risen, media has reported on rising currency prices, and retail investors have flocked to the Bitcoin exchange, Tether has only transparently described what happened on all exchanges. Unlike Tether, ordinary dollar deposits deposited on exchanges through bank accounts are not displayed in the open blockchain and cannot be seen by the entire world.
“Recently, we traded a lot of French currency inflows, so I believe that these Tether issuances are the result of new funds entering the market.”
So why did bitcoin prices rise in the near future? Facebook's Libra cryptocurrency is believed to have a positive impact on bitcoin prices. Blockchain Capital's Spencer Bogart also shared his views on Bitcoin's recent sharp price volatility on Friday. In addition to Facebook, he also believes Bitcoin is performing well in terms of hedging.
Tether volume is smaller than expected
In Powell's view, Tether's share of the bitcoin trading ecosystem is also much smaller than previously thought.
"I don't think Tether is artificially raising the price of Bitcoin. I think Tether actually only accounts for a small portion of the supply of all exchanges."
Powell believes that Tether is just a way for new funds to enter the exchange, and these new deposits have a tendency to raise bitcoin prices.
“Sometimes you will see a 10% increase in the price of a single day. What is certain is that when this happens, all exchanges accept 50,000 to 100,000 new users every day. This is why the price is pushed up. It is caused by huge retail demand and the attention of all media, and has nothing to do with Tether."