$BTC yesterday blue:
- Russian President Putin signed a law recognizing Bitcoin and cryptocurrencies as assets
- Minted another 1 billion USDT
After the US presidential election, Tether has minted a total of about 13 billion USDT.
There are a few issues that need to be discussed for everyone to pay attention to:
1. INCREASE LIQUIDITY
- Minting USDT is often accompanied by an increase in liquidity, as this stablecoin is used to trade many types of altcoins. This can increase the value or trading volume of altcoins on exchanges.
2. TEMPORARY PRICE INCREASE OF ALT COINS
- When capital flows from USDT into the market, some altcoins may experience short-term price increases. Coins with low trading volume or small market capitalization often have the most volatility.
3. TREND OF CAPITAL FLOW SHIFT
- After USDT is minted, capital often initially flows into Bitcoin and Ethereum before shifting to altcoins. Traders seeking higher profits often push money into altcoins after major assets stabilize in price.
4. INCREASED MARKET SENSITIVITY TO NEWS
- The altcoin market becomes more sensitive to announcements related to regulations, new products, or other trends. Altcoins can rise or fall sharply based on the confidence or fear of investors in a high liquidity environment.
5. RISK OF CORRECTION AFTER PRICE INCREASE
- When USDT capital no longer continues to flow in, or if the altcoin market becomes saturated, prices may correct sharply, especially with less liquid altcoins. When considering investments, be cautious of signs of significant volatility in the market to avoid risks when the market becomes too hot.
ZL: 0-9-8-7-5-6-0-6-2-4
