Bitcoin becomes "independent" and prepares for the next day

The influx of new dollars into the cryptocurrency market cannot be disputed. Whether it's the biggest scam in crypto history, or huge sums of money, they're ready to go.

Positive indicators of the price of bitcoin are starting to rise. For some time now, almost as soon as the restriction on travel has started, it has been following the course of the S&P 500. In recent days, however, it is clear that something has changed. When US stocks go up, so does that. When they fall, bitcoin doesn't fall! In the following hourly chart, the S&P 500 furure appears in blue and bitcoin in bars. Did it happen? We will find out soon.

Small investors are growing

A tweet from Brian Armstrong, founder and CEO of the well-known Coinbase exchange, stood out these days. Apparently, many Americans, after receiving the $ 1,200 order from the US government, deposited it in Coinbase!

How did they understand it? Because the percentage of deposits that corresponds exactly to the amount of 1,200 dollars has multiplied! Crazy but true. A large number of beneficiaries of the aid, as they received it, immediately deposited it to buy cryptocurrencies.

The incident confirms our information that since the beginning of the year, the opening of accounts in the exchanges by small investors has increased dramatically.

The role of stablecoins

For those who are new to crypto, let's explain that stablecoins are a special category of cryptocurrencies, which have been created to provide a stable exchange rate with a conventional currency. The most popular is Tether, which was founded in 2015 and has a locked exchange rate of 1 to 1 with the dollar.

Why have 1,000 Tether in your possession and not 1,000 regular, green, US dollars? Because in many exchanges trading is not done in "normal" dollars. Currency pairs are necessarily between cryptocurrencies. So let's say you've put $ 1,000 on a platform and you want to keep it in cash so you can wait for the opportunity to be selectively placed on a cryptocurrency. If you convert them to bitcoin, you are vulnerable to fluctuations. In other words, without having managed to make a single move, you may find yourself losing! So what good is a web site if it simply "blends in" with everything else out there? You buy 1,000 Tether. So you neither win nor lose on a dollar basis.

Another reason is that you can't send from one exchange directly to another fiat. Alternatively, you can use a bank as an intermediary, but this is a costly and time consuming process. It is much easier to turn your money into Tether. Also, stablecoins are useful when you have profits from trading, but for tax reasons you do not want to redeem them in the currency of your country and return them to your bank account during the year.

Surely you don't lose with Tether? As for this, we do not put our hand in the fire. If there is real coverage in the same amount of dollars, it is a question that has troubled many, without always giving absolutely reassuring answers.

Now that we have clarified what it is, we move on to something impressive that has been happening lately with stablecoins. Wich one; That their capitalization has increased significantly, according to coinmarketcap.

What does this mean; How much new money has entered the crypto market.

Let's look at the main ones from stablecoins:

* The Binance USD, from $ 17 million in capitalization on February 20, reached 207 in early April. Today it is at 187 million.

* The Paxos Standard, from $ 189 million in capitalization on March 5, had a relatively small rise to 264 on March 25 and has stabilized at $ 245 million in recent days.

* USD Coin had a market capitalization of 422 million on February 22 and reached $ 731 million on April 15.

* The largest of all, Tether, has a market capitalization of 6.4 billion these days. But the impressive thing is that a month ago he had $ 4.6 billion!

Conclusion

The influx of new dollars into the cryptocurrency market cannot be disputed. For this phenomenon, there are two cases. Whether it's the biggest scam in crypto history, or huge sums of money, they're ready to go. Probably very soon, on the occasion of halving. Either way, it's going to explode, with the lava either burning the entire crypto market or launching it.

There is, of course, another explanation, less dramatic. Depositors from less developed countries, who find it difficult to obtain hard currency, have found this way to protect themselves from inflation. Let's not forget that at this time not only the big Central Banks but also all of them are in uncontrolled printing.