Bitcoin (BTC), the crypto asset is starting to reverse course again amid the ongoing banking meltdown. Bitcoin price surged 20% over the past 30 days to regain the crucial $28K level. However, an analysis of Tether (USDT) market behavior shows that the price of BTC may be at risk of a major pullback.
According to Doctor Profit, a crypto market analyst stated that the more Tether printing USDT will affect the price of Bitcoin. He emphasized that during the period when the USDT market cap reached an all-time high (ATH) of $83.5 billion, the price of BTC continued to decline from $40K to $20K straight away.
However, USDT's market cap currently stands at $79 billion while Bitcoin hovers around $28K. The analyst added that as long as Tether printing continues, more BTC prices will be affected. Once this process is stopped, Bitcoin will see a healthy rally like it did when the biggest crypto was trading between $19K-$21K about two months ago.
Analysts state that Bitcoin price spike from $16k to $21k is a healthy spike and the rest is just a trap. He added that the recent surge was not a reaction of people running away from banks and buying more BTC. He added that such price increases are dangerous even if the price of Bitcoin reached $30K at one time.
The price of Bitcoin fell slightly over the past 24 hours. It traded at an average price of $27,728, at press time. Its 24-hour turnover fell by 1% to $14.2 billion.
