- USDT could turn out to be the best investment you make this month
- With the crypto markets crashing and the dollar potentially about to surge, the dollar could be the place to go for gains this month
- Holders can not only gain in their local currency but can also potentially pick up some cut price Bitcoin after the crash
USDT, and other stablecoins, are often seen as a last resort, a safe place to hide when the volatility of the markets hits. However, there are a couple of reasons why coins like USDT could be a great play for the next few weeks and could actually see you end the month better off.
Bitcoin Price Drop
Let’s be honest, Bitcoin isn’t looking great at the moment. Following its six-month run from $3,850 to $12,000 it needs a cooling off, and it’s having it. It didn’t take long to drop below $10,000, and it looks like the low $9,000s and perhaps even lower are calling.
It seems that the September Effect is taking hold, and in circumstances such as this it’s wise to be in USDT while the market plays out, rather than risking catching knives. After all, trading isn’t about making money, it’s about keeping it, and you can always load back on the risk when the market recovers.
Dollar Strength
The dollar has been crashing since March while Bitcoin has been booming, but we have been saying for some time now that it is due a resurgence, or at least a relief bounce. Given that Bitcoin and the dollar are inversely correlated a surging dollar is bad news for Bitcoin, but it’s good news if you’re holding USDT.
A surging dollar means that, unless your local currency manages to outpace it, your USDT holdings will rise in value against both Bitcoin and your local currency. This means that you’re effectively earning interest against your local currency almost risk-free.
Just yesterday the dollar broke above a four-month resistance line following five weeks of accumulation. It looks to have turned this four-month resistance into support, which suggests that it could be primed for a major breakout, and history has told us what this means.
USDT Could Ease the September Blues
If the crypto market is to experience a bloody September and the dollar is about to enjoy a rebound, USDT, or any other dollar-denominated stablecoins, is the perfect tonic to ease the September blues. You could well end the month better off in terms of your local currency and ready to buy up some cut price Bitcoin in October.
What could be better than that?
