Bitcoin rally fueled mostly by crypto enthusiasts, not new money
If crypto can recapture the public's imagination, it could go to new highs
Where is the money coming from that's driving the rally in Bitcoin? Prices are up another 13% today to $12,874.
The answer is seemingly tether. That's the controversial dollar-pegged crypto that's often used to move money around but is dogged by questions of whether its reserves are truly backed.
Mati Greenspan from eToro highlights that much of the money flowing into Bitcoin in the past day originated in tether. Of the buying into Bitcoin, $4.25 billion started in tether while $1.27B came from USD cash.
Another interesting tidbit is that even though money is flowing into other cryptos and prices are rising, Bitcoin continues to be the main beneficiary. Bitcoin volumes are higher than nearly all other cryptos combined and its value is over 60% of crypto for the first time since 2017.