A recent analysis has raised a critical question about how Tether, the largest stablecoin issuer, quietly influences Bitcoin’s price.

With over $140 billion in circulation, Tether comes under scrutiny for its potential role in Bitcoin price fluctuations. Tether claims to be 1:1 backed by USD reserves but has never undergone a full audit, relying instead on periodic attestations. This has continued to trigger concerns among industry observers. 

Correlation Between Tether’s Issuance and Bitcoin Price

Crypto community commentator “All Things XRP” recently pointed out a striking pattern between Tether’s supply and Bitcoin’s price movements.

Tether’s issuance often precedes significant Bitcoin price increases. For example, the commentator claimed that when Tether’s supply grew from $66 billion to $91 billion, Bitcoin’s price surged by 61%.

This correlation, observed over several years, raises the question: Is Bitcoin’s price influenced by Tether’s increasing supply?

Furthermore, the commentator cited a 2019 study by Griffin & Shams that examined blockchain data and concluded that Tether issuance directly correlated with Bitcoin’s recovery following price dips. The study also noted that this issuance was linked to just one entity and that Tether’s reserves were missing at the time. 

Meanwhile, Tether dismissed the study as unfounded, calling it a “house of cards.” Despite this, All Things XRP believes it could indicate price manipulation rather than natural market behavior.

Tether’s Alleged Lack of Transparency

While Tether remains a cornerstone of crypto liquidity, critics argue that the stablecoin’s lack of full transparency creates significant risks for the broader crypto market.

Notably, in 2023, a class action lawsuit accusing Tether of manipulation was dismissed due to insufficient evidence. However, the company has allegedly paid over $60 million in fines for misleading claims about its reserves.

Meanwhile, the growth of Tether’s supply continues, adding fuel to the ongoing debate. All Things XRP highlighted that Tether’s influence over crypto liquidity remains undeniable despite the lack of a full audit.

The pundit claimed that if regulators were to pull the plug on Tether or question its reserves, the liquidity and price of Bitcoin could face severe consequences.

Tether Under Continued Scrutiny 

Tether’s operations remain under constant scrutiny, especially as its market cap expands. In addition to concerns raised by All Things XRP, recent reports have surfaced suggesting that the U.S. Department of Justice may investigate Tether for potential involvement in money laundering and fraudulent activities.

Meanwhile, Tether CEO Paolo Ardoino dismissed these reports as outdated and unfounded. Yet, the allegations have added to the mounting pressure on the stablecoin issuer.

1/ Tether is the biggest player in crypto that nobody wants to audit.

👉 $120B+ in circulation

👉 Claims to be 1:1 backed by USD reserves

👉 But… no full audit, ever.

👉 Just attestations — which aren’t audits.

Sounds fine, right?

Well… buckle up.

— All Things XRP (@XRP_investing) April 9, 2025

Despite sideways market reactions, Bitwise CIO Matt Hougan has suggested that the tariff drama would have short and long-term bullish implications for Bitcoin.

Positive developments emerged from the tariff war front yesterday, sparking a market rebound. Notably, President Donald Trump announced a 90-day pause on reciprocal levy hikes, sending bullish waves through the US stock market and the crypto sector.

Before now, the tariff war severely impacted Bitcoin’s price. The asset dropped to $74,000 earlier this week, sparking a broader market slump. While the border importation tax tussle has sparked skepticism among crypto market investors, Bitwise CIO Matt Hougan believes it has near and long-term bullish implications for the pioneering cryptocurrency.

Silver Lining for Bitcoin?

Hougan highlighted an important statement from Steve Miran, the chairman of the White House Council of Economic Advisors, in a letter to investors on Tuesday. The president’s economic advisor noted that the dollar’s role as a global reserve currency has led to distortion and unsustainable trade deficits.

Miran noted that despite the reduced borrowing rate, the dollar’s trade currency monopoly has stunted America’s manufacturing sector amid other economic implications. Meanwhile, Hougan stressed that the speech passed a clear message: Trump intends to lower the dollar’s dominance, even at the detriment of its status as the global reserve currency.

The Bitwise CIO noted that this move to weaken the dollar would have notable implications for Bitcoin, the largest cryptocurrency by market cap. In the short term, he stated that the premier asset’s -0.4 to -0.8 correlation with the US Dollar Index (DXY) would ensure that Bitcoin rises as the dollar falls.

Bitcoin to Assume Global Reserve Role

Remarkably, Hougan noted that the dollar’s decline as a global reserve currency would pave the way for a market shift to a more fractured reserve system. He highlighted that this would mean a demand for hard money for international trade settlement, a role that Bitcoin and gold will effectively fit into.

As a result, the Bitwise executive predicts an elevated position for Bitcoin as the new global reserve asset in the long term. 

Interestingly, Hougan is not the only one who sees Bitcoin upsetting the dollar to become a global reserve asset; BlackRock’s CEO, Larry Fink, thinks so too. In an annual stakeholder’s letter, he noted that Bitcoin poses serious threats to the dollar’s dominance and sees the digital asset taking preeminence in the near future.

Meanwhile, the Bitwise CIO previously reiterated that Bitcoin remains on track to hit $200,000 before the end of the year.

World Food Program USA (WFP USA) has announced that it is now accepting donations in over Bitcoin and 79 types of crypto assets.

The new initiative, launched through a partnership with The Giving Block, includes well-known digital currencies like Bitcoin, Ethereum, and USD Coin. 

This move aims to provide donors with an innovative and secure avenue to support WFP’s lifesaving operations in more than 120 countries and territories.

A Fast, Secure Way to Support Food Assistance

WFP USA’s decision to accept crypto comes as global hunger is reaching alarming levels. As traditional aid systems face growing pressures, the organization seeks new ways to engage with a broad range of donors.

Crypto offers several advantages, including lower transaction fees compared to traditional methods, allowing more funds to reach those in need directly. Additionally, crypto donations are processed quickly, often in minutes, whereas conventional methods can take days.

Notably, crypto donations also offer potential tax benefits, including exemptions from capital gains tax and eligibility for deductions at full market value. These incentives make it easier for donors to contribute meaningfully while taking advantage of the tax advantages associated with digital currencies. 

Relief Fund Launched to Address Funding Shortfall

The World Food Program launched its Emergency Hunger Relief Fund on March 31 to address its urgent funding needs. The fund aims to raise over $25 million in private sector and individual donations. 

The fund is intended to help fill the financial gaps left by WFP’s recent shortfall warning, which directly impacts its ability to provide aid to 58 million people facing starvation. This initiative aligns with WFP’s ongoing efforts to mitigate the effects of hunger through food assistance programs in countries grappling with conflict and natural disasters.

In a statement, Dorota Amin, Chief Philanthropy and Partnerships Officer at WFP USA, emphasized the need for innovative approaches to funding. As the crisis deepens, she highlighted that adapting to emerging technologies like blockchain and cryptocurrency is not just a choice—it is essential for keeping pace with the growing demand for aid.

WFP’s Blockchain and Crypto Integration

Notably, WFP’s adoption of blockchain technology is not new. It already uses blockchain to deliver aid directly to refugees via secure digital wallets. This system reduces transaction costs by up to 98%, minimizing fraud and ensuring faster assistance delivery.

Jack Dorsey, ex-co-founder of Twitter, now X, recently suggested that Signal, the encrypted communications app, should integrate Bitcoin for peer-to-peer (P2P) payments. 

Dorsey’s proposal came in response to a comment by Calle, an open-source developer, who advocated for Signal to use Bitcoin due to its secure communication platform. 

true. signal should use bitcoin for p2p payments https://t.co/kGLykl0i6r

— jack (@jack) April 9, 2025

Dorsey’s tweet called attention to the potential for Signal to embrace Bitcoin, seeing it as an ideal solution for P2P transactions, as it would align with Signal’s goal of maintaining privacy and security in user interactions.

Vision for Bitcoin Integration in Signal

For context Calle highlighted that Bitcoin would serve as an excellent option for Signal, as the app already provides end-to-end encryption for its messages. Notably, incorporating Bitcoin could make Signal even more useful, particularly for users seeking privacy in financial transactions. 

According to Calle, this integration would demonstrate the true potential of digital currencies, as it would present a platform where users could exchange tokens in a secure environment without needing a separate blockchain. 

Dorsey supports this view. However, other users began commenting on the Twitter co-founder’s remarks amid a flood of mixed opinions. 

Signal’s Past Stance on Cryptos

Despite the support for Dorsey’s idea, a user reminded the public that Signal had previously expressed a negative stance toward cryptos, particularly Bitcoin. In past statements, Signal’s leadership had criticized Bitcoin and other digital currencies, calling them scams. 

The controversy surrounding Signal’s past decisions became even more pronounced when a critic said that the app chose to partner with Mobile Coin in 2021. This move introduced a pre-mined crypto into the app, which was met with failure.

Global Bitcoin Adoption Trends 

Meanwhile, other global companies continue to explore the adoption of crypto payments, showing that the idea of digital currencies in mainstream commerce is not a passing trend.

Ferrari began accepting crypto payments in the United States and later expanded this initiative to Europe. The luxury car brand partnered with BitPay to enable customers to purchase vehicles using cryptocurrencies, including Bitcoin, Ether, and USD Coin.

Similarly, Strike, a global payments facilitator, raised $80 million to support the advancement of its payment systems using the Bitcoin Lightning Network. The Lightning Network, designed to enhance Bitcoin’s transaction speed and efficiency, has gained traction among major industry players, including Strike.