• The recent surge in Bitcoin’s price has sparked curiosity and debate within the crypto community.
• Data suggests that TUSD, a stablecoin, may have played a significant role in contributing to Bitcoin’s upward momentum.
• TUSD’s dominance in BTC trading volume has surpassed that of USDT.
The Influence of TUSD on Bitcoin Price Rally
What is TUSD?
TUSD is a stablecoin developed by TrustToken which exists as an ERC-20 token on the Ethereum blockchain. It is designed to maintain its parity with the US Dollar, providing users with a reliable store of value and allowing them to easily switch between fiat and cryptocurrency.
Evidence Suggesting TUSD’s Role in BTC Rally
Recent data suggests that there is a correlation between increases in the circulating supply of TUSD and rallies in Bitcoin’s price. In three distinct occasions since 2018, TUSD supply increased significantly followed by surges in Bitcoin prices within short periods. Furthermore, trading volume for BTC/TUSD trading pairs has surpassed that of BTC/USDT, showing the growing dominance of TUSD as a trading pair. CryptoQuant CEO Ki Young Ju further suggested that while USDT issuance has slowed compared to redemption rate, the expanding supply of TUSD may continue to impact the market positively for both coins.
Impact on Traders
Traders are currently facing the impending expiration of 31,000 BTC options which could result in significant shifts in market sentiment depending on where they close their positions at expiration day. With this event looming over them combined with increasing support from TUSD, traders are becoming increasingly bullish about their investments and expecting further gains from Bitcoin prices going forward.
Conclusion
Based on current trends and data analysis from CryptoViz and CryptoQuant CEO Ki Young Ju , it appears that increases in circulating supplies of TUSD have coincided with surges in Bitcoin prices over multiple occasions since 2018 . This provides evidence suggesting that while other factors may be driving Bitcoin’s rally such as Blackrock’s ETF or short squeezes , it is likely that TUSD also played an important role given its growing dominance among top spot exchanges for BTC pairs . As traders await expiry day before deciding whether or not to remain long positions , increasing support from stablecoins like USDT and TUSD could lead to further upside potential for BTC going forward .
