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Comment by qeternity | Hacker News Reader

I'm not sure you guys get this: Tether is the reason it comes back.

Tether drove the 2017 bubble (this is when Bitfinex'd got their start) and has driven the 2021 bubble to the tune of $70b.

This resilience wouldn't exist without Tether.

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Where are you getting this information from? Is it from this study [1]? Real money is also going into crypto [2, 3, 4, 5]. I think it's quite an accusation to say that Tether is always the reason crypto comes back. People also "buy the dip". In some cases, maybe it is Tether, I don't know, but saying in all cases that it is Tether making crypto bounce back seems like a stretch to me.

You assume you know why it bounces back every time after reaching whatever bottom it does, so, I'm also wondering, what do you think triggers it to start going down after reaching its tops?

[1] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066

[2] https://www.microstrategy.com/en/investor-relations/press/mi...

[3] https://www.bloomberg.com/news/articles/2021-06-03/novogratz...

[4] https://news.bitcoin.com/kevin-oleary-crypto-exposure-greate...

[5] https://www.cnn.com/2021/04/28/investing/tesla-bitcoin/index...

If I have to believe the research on the 2017 pump, tether had a 50% role in it. I'm not sure how much 70b does for today's market cap. Surely it's significant, but it would be an exaggeration to say there would be no demand without tether.

In the end, it doesn't matter. You can make money in crypto whether it goes down, up or is scalping.

Well let’s see, since 2018 total crypto market cap is about 3x but Tether is about 30x and total stable coins are over 40x what they were.

Diminishing returns to pumping.

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