Stablecoin issuer Tether (USDT) says it’s branching out and advancing beyond just offering dollar-pegged crypto assets.

In a new announcement, Tether says that it is adding four new divisions to its business model – data, finance, power, and education – as a means of creating an inclusive, future-proof financial and tech ecosystem.

“Tether’s expansion beyond its well-established USDT stablecoin signifies a paradigm shift in its approach to financial empowerment.

By focusing on sustainable solutions adaptive to the needs of individuals, communities, cities and countries, responsible Bitcoin mining, artificial intelligence infrastructure and decentralized communication platforms, Tether is actively contributing to a future-proof financial and tech ecosystem.”

According to the crypto firm, Tether Data will focus on development and investment into emerging technologies, such as artificial intelligence (AI) and peer-to-peer platforms while Tether Power will see the company venture into the world of crypto mining, specifically Bitcoin (BTC), for the first time.

Furthermore, Tether Finance will work to build financial infrastructure, such as an upcoming digital asset tokenization platform, while Tether Edu aims to expand knowledge of digital assets across the globe.

As stated by Tether chief executive Paolo Ardoino in the announcement,

“Thriving together is in our DNA. We disrupted the traditional financial landscape with the world’s first and most trusted stablecoin. Now, we’re daring to kickstart inclusive infrastructure solutions, dismantling traditional systems for fairness.

With this evolution beyond our traditional stablecoin offerings, we are ready to build and support the invention and implementation of cutting-edge technology that removes the limitations of what’s possible in this world.”

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Analysts at Goldman Sachs, a leading global banking and investment management firm, have offered valuable insights into the anticipated effects of the forthcoming Bitcoin halving, on the price of the cryptocurrency. They emphasize that while the Bitcoin halving is a noteworthy event, other major factors will likely exert greater influence on Bitcoin’s future value. 

Bitcoin Halving To Play Lesser Role In BTC’s Outlook

In a note to clients, Goldman Sach’s analysts have cautioned against reading too much into the past Bitcoin halving cycles and their impact on the cryptocurrency. Based on historical trends, the Bitcoin halving cycles tend to have a favorable effect on the value of Bitcoin, often triggering a bull run. 

The bank noted that whether the Bitcoin halving scheduled for April 20, becomes a “buy the rumor, sell the news event,” it would hold less significance for the cryptocurrency’s medium-term outlook.

They argue that the future performance of the pioneer cryptocurrency would be more heavily influenced by the supply and demand dynamics within the current market. Additionally, the analysts highlighted that the growing interest and demand for Spot Bitcoin Exchange Traded Funds (ETFs) combined with the self-reflexive nature of the crypto market would be the primary contributing factor to Bitcoin’s price action and future outlook. 

Sharing a similar perspective, analysts at CryptoQuant disclosed earlier in April that the 2024 Bitcoin halving was no longer a primary catalyst for Bitcoin’s bullish surge. They highlighted that factors such as increasing demand from large-scale investors and diminishing supply were now the key drivers of Bitcoin’s upward momentum.  

Analysts Warn Of Macroeconomic Influence On New Halving Cycle

Analysts at Goldman Sachs have predicted that macroeconomic factors such as inflation could have a significant influence on the upcoming Bitcoin halving event. 

“Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions,” Goldman Sachs analysts noted.

Unlike previous halving cycles, the present economic conditions display high inflationary pressures and interest rates, which could cause the 2024 Bitcoin halving cycle to diverge from historical patterns. In other words, the analysts have suggested that for Bitcoin’s historical halving bull runs to occur, macro conditions need to be supportive of investor risk-taking. 

Currently, the United States faces challenges with high inflation, while interest rates stand above 5%. These conditions may exert pressure on Bitcoin’s market dynamics. However, despite the prevailing circumstances, many see the digital currency as a formidable inflation hedge and a beacon of hope against escalating inflationary pressures.

BTC price at $62,000 | Source: BTCUSD on Tradingview.com

Featured image from CryptoSlate, chart from Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

The digital asset market tends to underestimate the long-term price impact of Bitcoin (BTC) halvings, according to the crypto index fund management giant Bitwise.

Bitwise notes that after the previous halvings in 2012, 2016 and 2020, the price of BTC in the first month went up 9%, dropped 10% and went up 6%, respectively.

However, Bitcoin skyrocketed by 8,839% in the first year after the 2012 halving, 285% in the year after the 2016 event and 548% after the 2020 halving.

Bitcoin spot trading volumes have also grown in the year following each of the three halvings, according to Bitwise Chief Investment Officer Matt Hougan and Juan Leon, a senior crypto research analyst at the company.

“Of course, we have limited data: We are only working with three historical examples. Still, the picture they paint is relatively intuitive, suggesting that the market prices in the short-term impact of the halving but underestimate the long-term impact. The data also suggests that long-term, the halving may be conducive to price appreciation.”

Bitcoin’s halving date is currently slated for April 20th, according to the hash rate marketplace NiceHash.

BTC is trading at $61,486 at time of writing. The top-ranked crypto asset by market cap is down more than 3% in the past 24 hours and more than 12% in the past week.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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