Current USDT supply indicates Bitcoin will reach $20,000

This year, the Bitcoin market has continued to rise. Cryptocurrency analyst FilbFilb has conducted a detailed analysis of the market structure and the issuance of USDT, expressing a very positive outlook on the market before the halving of production in 2020.

Cryptocurrency and stock analyst FilbFilb pointed out that Bitcoin has undergone a structural shift and is currently consolidating around $11,800 after breaking through the double bottom and reaching $9,500, forming pressure from the first quarter of 2018.

FilbFilb believes that consolidation below the pressure is a bullish indicator:

In the past seven weeks, Bitcoin has broken through $12,000 four times. This is different from the first quarter of 2018 when all attempts to break above $11,800 quickly retraced.

Stabilizing at $14,000 will open the door to a bull market. Breaking through $14,000 will mark a new historical high in 2019, and news surrounding this event may lead to an influx of funds without triggering selling.

Rising USDT supply will not immediately affect the market

FilbFilb pointed out that there is approximately a 32-day delay between the initiation of USDT and Bitcoin prices. He analyzed the relationship between USDT market cap and Bitcoin price starting from the 2018 market bottom.

After analyzing both, it was found that when USDT market cap decreases, Bitcoin consolidates and begins to decline after about 32 days; the opposite occurs when the market cap increases.

According to a report, analyst FilbFilb calculated in the model shown in the figure below and obtained the data result that "one billion USDT market cap equals $4,999 Bitcoin," therefore, when applied to the current $4.34 billion USDT market cap, the model indicates that Bitcoin's price should be around $20,000.

In fact, when the market is at its bottom, most investors may be cautious, so there are doubts about the data that one billion USDT market cap equals $4,999 Bitcoin.

Previously, ABM reports also pointed out that despite Tether facing criticism for market manipulation, Jesse Powell, CEO of the trading platform Kraken, believes that Bitcoin prices are being driven by actual demand, not Tether manipulation.

Further Reading

• 318 addresses occupy 80% of USDT circulation
• BMO Chief Investment Strategist: Calling Bitcoin a safe haven asset is premature

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