USDT Value Climbs Above $1, Fueled by Demand and Bitcoin Holdings, Experts Predict Further gains
CARACAS, Venezuela – Tether (USDT), the world’s largest stablecoin, has briefly surpassed its $1 peg, trading at $0.997 on Binance according to analyst observations reported by Criptonoticias. This slight deviation from the 1:1 ratio with the dollar is attributed to supply and demand dynamics in the peer-to-peer (P2P) market, where the Venezuelan Central bank’s (BCV) efforts to control the Bolívar’s devaluation are insufficient to meet demand, driving users to the parallel market.
The situation in Venezuela highlights a broader trend: restrictions on dollar access by governments in Latin America are fueling the growth of stablecoins, as noted by Manuel Ferrari, president of the NGO Bitcoin Argentina, in August 2023.
beyond Venezuela, economists are predicting a more ample revaluation of USDT. Saifedean Ammous, author of The Bitcoin Standard, projects an “certain” revaluation exceeding $1, perhaps triggering a “massive leakage of the dollar.” Ammous forecasts this will occur as tether increases its Bitcoin reserves – currently totaling 100,000 BTC and over 50 tons of gold, valued at more than $10 billion – while the U.S. national debt approaches $37 trillion.
“While Bitcoin is appreciated,the dollar depreciates,” Ammous stated during the Bitcoin Conference in Las Vegas,suggesting USDT could become a “financial trustee” for a de facto Bitcoin standard. He argues Tether’s investment in U.S. Treasury bonds is an “illusion” given the scale of American debt, and that Bitcoin accumulation will create a “virtuous circle” reinforcing USDT’s value.
the Venezuelan government’s use of USDT for oil sales and payments to allies also contributes to important control over the stablecoin’s rate, demonstrating its growing influence in global finance.
