On March 15, 2020 the US Federal Reserve dropped reserve requirements for depository institutions.
Since then, the US market has benefited from trillions of dollar’s worth of liquidity entering the system.
This was also matched by central banks around the world who are pumping dollars, Euros, Pesos and Rubles into the global financial system. All to keep the markets liquid, businesses solvent and consumer spending alive and well.
According to a report recently published by Jarvis Labs (which you can read here), a similar scenario is playing out in crypto. Their AI/ML software reveals Tether is pushing markets higher in much the same way the US Federal Reserve’s printing is pushing asset prices in the traditional markets higher.
Their results make intuitive sense when simply looking at the growth of USDT’s market cap since March. It’s grown from $4.6 billion to over $9 billion in only three months. This comes out to a whopping $50.6 million per day on average.
In an interview with Managing Partner, Ben Lilly, he states,
“The fact that prices went higher as more liquidity was added to crypto didn’t surprise us much. What surprised us, was how immediate the effect was to Bitcoin and Ether prices. Our proprietary AI/ML software, Jarvis, tells us this is the main driver in crypto right now.”
The report was published just as Jarvis Labs celebrated their two-year anniversary. Over the coming quarter the team is releasing a platform, where users can check on crypto metrics such as on-chain exchange flow, flow of crypto from miners, network statistics, and more.
They will also make their in-house Indexes available for users to track. These are useful Indexes that reveal if Bitcoin is in a buy or sell zone.
Ben Lilly commented more on this:
“We are amazed with how quickly we’ve grown over the last two years. What started out as a simple desire to find out what is moving crypto markets has progressed into Jarvis Labs. It’s nice to reflect on it all… And hopefully we can become the one stop shop for crypto traders around the world over the next two years.”
In order to read the team’s Market Outlook Report for Q2, head over to their website here. The team releases this report once a quarter in addition to their free blog that publishes occasional insights gleaned from their AI/ML software that tracks market movers in crypto.
You can also subscribe to their daily one-minute newsletter Daily Espresso that emails you the metrics needed to start your trading day off right.
We are a team of passionate professionals with experience in data science, software engineering, economics and trading who came together to develop Jarvis, an artificial intelligence / machine learning software that tracks market movers. We’ve since gone on to become a one stop shop for crypto traders by building new tools, metrics, and platforms every day. Stop by Jarvis Labs to learn more and subscribe to our newsletter to learn what market mover is driving the market today.