BTC prices are quoted in USDT (not USD) = Huge(!) difference
Traders (due to deliberate misleading naming by Tether?) assume that 1 USD (1 US Dollar) is equal to 1 USDT (1 Tether). This is a fundamentally incorrect assumption. If for example 1 BTC is quoted as 90,000 USDT, it is not even closely equal to 1 BTC being valued 90,000 USD.
Trading hypothesis
What traders get wrong
False assumption:
"1 BTC is worth [x] USD"
Truth:
Actual trading pair is: 1 BTC = [x] USDT (not USD)
Problem for trader:
Traders falsely assume that 1 USD = 1 USDT. That is far from the truth.
Key takeaways
What you should consider as a trader
xxx
Data you need
"Better to be approximately right than precisely wrong"
If BTC is quoted as [x] USDT, and USDT is [x%] of actual USD value, then, if you pay for your BTC purchases in USD, you need to know the difference between USD and USDT.
It's exactly the same as when 1 USD is 0.9 EUR and 1 EUR = 0.9 GBP, then 1 USD = 0.81 GBP, not 0.9 GBP.
Similarly, if 1 BTC is quoted 90,000 USDT, and 1 USDT is worth 0.2 USD, then, 1 BTC is worth 18,000 USD, not 90,000.
Data points:
xxx
yyy
zzz
Comparison of data sources
Where to get crucial data feeds
Bloomberg
Data available: ❌ No
Binance, OKX, Coinbase, Bybit, KuCoin, etc
Data available: ❌ No
Madjik
Data available: âś… Yes
Get access to this data immediately.
Use yourself, or pass on to your software engineer. Or to your AI model - or to your boss.
Science behind hypothesis
Research supports this hypothesis
xxx (link to whitepaper)