Zoltan Vardai6 hours agoTether mints another $1B — Last time, it helped Bitcoin climb to $73KBitcoin has flipped its old resistance into support as USDT’s market cap continues to grow rapidly in 2024.3541 Total views5 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksTether’s USDT (USDT), the world’s largest stablecoin, has minted another $1 billion, bringing its market capitalization above $110 billion, which could catalyze Bitcoin’s (BTC) next move to new all-time highs.Will more USDT boost Bitcoin’s price?
Tether’s treasury has minted $1 billion worth of USDT during the past 24 hours, bringing its yearly total to $31 billion.
The newly minted USDT was a big reason why Bitcoin price climbed from $27,000 to $73,000, according to a May 17 post from Lookonchain:Bitcoin chart with newly-minted USDT. Source: Lookonchain
Tether could also directly contribute to Bitcoin’s rally. The company said it would invest 15% of its net profit in Bitcoin to diversify the stablecoin’s backing assets.
Tether acquired 8,888 BTC on March 31, worth $618 million, making the stablecoin issuer the seventh-largest Bitcoin holder in the world, according to Bitinfocharts. Tether’s wallet currently holds over 78,317 BTC, worth over $5.18 billion, one year after announcing its plan to diversify into Bitcoin.Tether USDT, market cap, all-time chart. Source: CoinMarketCap
Meanwhile, Bitcoin’s price action is still largely dependent on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). The United States Bitcoin ETFs saw their second week of net positive outflows, amassing over $200 million worth of cumulative net flows so far, according to Dune.Bitcoin ETF net flows, weekly, in dollars. Source: Dune
Institutional inflows from ETFs were a significant part of the current Bitcoin rally to new all-time highs. By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.
Related:M2 money supply ‘holds the key’ for Bitcoin’s next move — Market analystBitcoin breakout confirmed — daily chart
Bitcoin’s price action has confirmed May 16’s breakout on the daily chart, where the $65,000 mark seems to act as a strong support for BTC, according to TradingView.BTC/USDT, breakout on 1-day chart. Source: TradingView
Another bullish sign for investors is that Bitcoin has flipped its old resistance into support on the monthly chart, according to a May 16 X post by popular crypto analyst Rekt Capital.BTC/USD, 1-month chart. Source: Rekt Capital
However, Bitcoin could still see a temporary correction to below $63,500 before reclaiming the $70,000 psychological mark, according to the artificial intelligence-based predictions algorithm of ScorehoodAI, which wrote in a May 16 X post:“Now it is time for a temporary pull-back to around $63,000 - $63.500 for Bitcoin! As we reclaimed $65,000 and are on the the way to $70,000+, this will be a healthy pullback for liquidating high-leveraged greedy traders!”
A Bitcoin correction to below $63,500 would liquidate over $1.76 billion worth of cumulative leveraged long positions, according to Coinglass data. Liquidations would reach $1.87 billion under the $63,000 mark.Bitcoin exchange liquidation map. Source: Coinglass
Related:Crypto trader turns $3K into $46M in one month as PEPE price soars
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Analysis# Bitcoin Price# Bitcoin Analysis# Markets# Tether# Price Analysis# Stablecoin# Market AnalysisAdd reaction