USDT Value Climbs Above $1, Fueledโ by Demand and Bitcoinโค Holdings, Experts Predict Further gains
CARACAS,โค Venezuela – Tetherโค (USDT), the world’s largest stablecoin, has brieflyโ surpassed its $1 peg, trading at $0.997 on Binanceโ according to analyst observations reported by Criptonoticias. โThis โslight deviation from the 1:1 ratio with the dollar is attributed to supply and demand dynamics inโ the peer-to-peerโข (P2P) โฃmarket, where the Venezuelan Central bank’s โ(BCV)โข efforts to control the Bolรญvar’s devaluation are insufficient โฃto meet demand, driving users to the parallel market.
The situation in Venezuelaโ highlights a broader trend: restrictions on dollar access by governments in Latin America are fueling the growth of stablecoins, as noted by Manuelโ Ferrari, president of the NGO Bitcoin Argentina, in August 2023.
beyond Venezuela, economists are predicting โขaโ more ample revaluation ofโ USDT. Saifedean Ammous, authorโ ofโ The Bitcoin Standard, projects an “certain”โ revaluation exceeding $1, perhaps triggering a “massive leakage of the dollar.” Ammous forecasts โขthis will occur as tetherโ increases its Bitcoin reserves – currently totaling 100,000 BTC and over 50โข tons of gold, valued at more thanโฃ $10 billion – while theโ U.S. nationalโค debtโค approaches โ$37 trillion.
“Whileโค Bitcoin is appreciated,the dollar depreciates,” Ammous stated during โคthe Bitcoin Conference inโ Las Vegas,suggesting USDT could become a “financial trustee” for a de facto Bitcoin standard. He arguesโข 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 โUSDT’s โคvalue.
the Venezuelan government’s useโ of USDT for oil sales and payments toโ allies also contributes to importantโค control over the stablecoin’s rate, demonstrating itsโ growingโฃ influence in global finance.