Tether’s effect on the crypto market at large cannot be understated. Not only does the fiat-backed stablecoin act as a safe haven asset during downtrends and crashes, in the past sentiment surrounding Tether has had an enormous impact on Bitcoin price. In the past, Tether turmoil has led to massive increases in Bitcoin price and the value of other crypto assets, as capital held in Tether outflows back into other cryptocurrencies.
The overall market cap of Tether also appears to act as a magnet for Bitcoin price, with the price of the digital asset increasing sharply whenever new Tether is injected into the crypto market. With yet another half-a-billion dollars worth of Tether market cap added to the crypto market since mid-May, another Bitcoin price surge may also be ahead.