Bitcoin's latest dump lacking healthy respond

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Santrends
Jan 4, 2021

Happy Christmas and a happy New Year, dear crypto brothers and sisters!

Santiment is back to market analysis.

Today we will cover BTC from two different angles because of interesting data.

Next days we will pay our attention to altcoins.


1. Borrow and pump


It's almost impossible not to notice an overwhelming Bitcoin rally, easily breaking both $20K and $30K:

SourceL Sanbase

We consider this BTC pump is mainly driven by Tether. Yes, by good old USDT.

Market players are borrowing Tether. What for? For riding BTC.

Why do we think so?


First, BTC/USDT is the most liquid pair in many places:

Source: Coingecko

Second, lending rates for USDT were higher than many other stablecoins. On the second day of 2021, traders agreed to pay almost 68% APY to borrow USDT from AAVE:

Source: Crypto Real Time Lending Rates template

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Assets from this insight

Bitcoin logo

BitcoinBTC

$ 32688.46

12.00%in last 7d
Tether logo

TetherUSDT

$ 1.00

0.13%in last 7d
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