Bloomberg Strategist: Rising USDT Transactions Boost the Dollar’s Value

Dollar-pegged stablecoins bolster the value of the U.S. dollar. This was stated by Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, writes Blockworks.

“Digital-dollar transactions are only a matter of time. The U.S. government should start regulating this market, and then we will crush China,” McGlone said.

According to him, dollar-pegged stablecoins dominate among other similar assets.

“Bitcoin is moving confidently toward becoming a global digital reserve asset. Through dollar-pegged stablecoins, such as Tether, crypto assets enhance the value of the dollar. Already, the most traded coins are the digital versions of the dollar,” McGlone contends.

The current market capitalization of USDT, according to CoinMarketCap, stands at $65.77 billion, nearly five times higher than a year ago. In Bitcoin terms, this metric rose from 1.2 million BTC in 2020 to 1.38 million BTC in 2021.

According to McGlone, since its launch, Tether’s market capitalization has grown and, in the long run, has correlated with rising Bitcoin prices.

Earlier, Mike McGlone called Ethereum an obstacle to Bitcoin’s rise to $100,000.

Subscribe to ForkLog’s news on Telegram: ForkLog Feed — the full feed of news, ForkLog — the most important news, infographics and opinions.