Tether continues to dominate money flow into Bitcoin as the U.S Dollar follows suit
Bitcoin’s spectacular surge has been the talk of the town, with many analysts and researchers expecting the cryptocurrency to climb to even greater all-time highs. According to a recent analysis, the real reason for Bitcoin’s climb can be attributed to cryptocurrency traders and maturing market fundamentals, and not the introduction of Facebook’s cryptocurrency, Libra.
Mati Greenspan, Senior Market Analyst at eToro, recently tweeted that data suggests a drastic increase in the involvement of cryptocurrency traders who “are already familiar with the market.” The chart showed that Tether, USD, EUR, JPY, Yuan and GBP, all had inflows into Bitcoin. This is quite unsurprising, given the fact that the world’s largest cryptocurrency tested the $13,000 mark on Binance on June 26.
A majority of the capital from Tether was directed into Bitcoin, with some amount being circulated into the Ethereum ecosystem as BTC/ETH pairs. The capital was also pushed into Litecoin, XRP, Bitcoin Cash and some other altcoins such as ZCash, Tron and Cardano.
Ethereum was second in line to receive funds from the Tether treasury, which was later converted to alts such as EOS and Tron. Tether had its own allocations into other altcoins too, with XRP being the biggest beneficiary. After Tether, the money flow was mostly in the form of the US Dollar. As expected, the dollar flow was greatest towards Bitcoin, followed by Ethereum, Bitcoin Cash and Litecoin.
The U.S Dollar’s dominance in the fiat industry was evident as its compatriots such as the Euro and the Japanese Yen were used only in nominal amounts for cryptocurrency investments. Another striking feature was that fiat currencies such as EUR, JPY, and the GBP only had investments in the form of Bitcoin, while the Chinese Yuan was more diversified. The Yuan was used for Bitcoin as well as for XRP, the third largest cryptocurrency.
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