What does this chart tell you?
We have the supply and market cap of tethers climbing significantly over the last several months, from $5 billion April to almost $20 billion now.
At the same time, we have the price of bitcoin moving up significantly as well.
BTC has gone from about $6k to about $20k over that same time period.
They have both been going up basically in lockstep:
(Source:
)https://twitter.com/glassnode/status/1337151010742132745/photo/1
- glassnode
What does this sort of correlation tell you???
To me, it says one thing. It says that new money is coming in.
New money is coming in and they are buying up tether and new money is coming and they are buying up bitcoin.
There isn't really any other way they both can go up together.
Often when bitcoin has gone up in the past, the supply of tethers has gone down as people sell tether to get into bitcoin, that's not happening right now.
I guess there is one other possibility as well.
Money could be flowing out of the altcoins into bitcoin and tether, which there is definitely some of that going on.
We can see evidence of that as our favorite altcoins outside the top couple, struggling mightily over the last several months.
Is our favorite altcoin going to continue to struggle or is this the lows before it joins the party?