The largest stablecoin, Tether has witnessed significant growth ever since the time of its origin. The stablecoin recently pushed Bitcoin Cash into the fifth position on CoinMarketCap as Tether took its position as the fourth-largest cryptocurrency by market cap. Regardless of its growth, the controversies that surround Tether have been surfing the crypto industry. The regulatory climate around Tether doesn’t seem to affect China as it is encountering increased crypto-activity pertaining to Tether.
China’s over-the-counter trading has witnessed an increase over the last couple of months. As per Chainalysis’ report, Bitcoin is being obtained via Tether by Chinese traders, with 99% of the total in spot trades. This news surfaces while the Chinese yuan is completely displaced in the country.
Furthermore, the report also revealed that prominent crypto-exchanges constituted 40 percent of the Bitcoin transactions in Asia. Additionally, 35 percent of all the Bitcoin trade in the first six months of this year was also incurred from these crypto-exchanges. These exchanges also dominated the trading volumes in the Futures market and options garnering about 90 percent of the contracts traded across the globe.
China’s position in the spot trading market since 2018 has been quite strong soon after the country revealed that Chinese users wouldn’t be able to make use of digital assets with the yuan. Amidst this, Malta-based cryptocurrency exchange, Binance launched its peer-to-peer functionality that enables yuan trading service.
OTC crypto trading surged along with the increase of its demand soon after the ban in China. The data from Chainalysis further revealed that trade of $877 million in Bitcoin for the year 2019 was recorded from just 10 OTC services. These numbers further indicated a 52 percent increase over the last 12 months.
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”