Tether, the publisher behind USDT, the leading Stablecoin, made the headlines by acquiring $1 billion worth of Bitcoin (8,800 BTC in close proximity) in the third quarter of this year.
Many investors have responded positively to this huge investment, but industry experts like Swandesk CEO Jacob King have been warned.
The true value of Bitcoin can fall below $1,000
recently post On social media platform X (formerly Twitter), King raises serious concerns about the Bitcoin market, claiming that 80-90% of purchases are artificially inflated.
He argues that Tether essentially creates money “from thin air” and injects it into Bitcoin, thereby deterring the speculative environment. Despite the growth trends of Funds traded on the exchange (ETF) and the institutional accumulation of Bitcoin as a Treasury Reserve, the real value of cryptocurrency may be “are well below $1,000”.
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The story has continued for years and has sparked mixed reactions within the community. One investor rebutted King’s claim by asking why major institutional players, including Sovereign ETFS and Fortune 500 companies, continue to invest in Bitcoin if the bulk of their trading volume is considered fake.
His arguments suggest that these institutions are given misinformation or that the real bubble is within traditional Fiat currency, not cryptocurrencies like Bitcoin.
king Rebuttal This concept is primarily “myth” in the idea of important institutional investment in Bitcoin. He argued that most influx into ETFs is driven by retail investors rather than large institutions.
Skepticism vs Optimism
He further amplified his skepticism, and the king criticized him. strategy (formerly MicroStrategy) is described as “Leveraged Bitcoin Casino,” the largest publicly traded company with over 600,000 BTC.
He argues that the company’s co-founder Michael Saylor has a history of inflated numbers during the dot-com bubble, suggesting that the current situation is a repetition of “my mistakes of the past.”
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In contrast, other experts like Quinten Francois have seen Tether’s recent Bitcoin purchases through a more optimistic lens. François Highlights The US government is promoting the adoption of Stablecoin via the Genius Act. This requires that Stablecoin publishers be approved, transparent and fully supported by the US Treasury Department.
He argues that this regulatory framework has led trillions of offshore eurodollars to US bonds through stable ones, effectively continuing quantitative easing, but can continue through these private entities rather than through the Federal Reserve (Fed).
At the time of writing, BTC is trading at $113,200 within a channel with a lower integration range, and does not clearly indicate where the price will move next. According to Coingecko datamajor cryptocurrencies are currently 8% below their all-time high.
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