Tether mints another $1B — Last time, it helped Bitcoin climb to $73K

    18 May 2024
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    Tether’s USDT, the world’s largest stablecoin, has minted another $1 billion, bringing its market capitalization above $110 billion, which could catalyze Bitcoin’s 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.

    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.

    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.

    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.

    Bitcoin 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.

    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.

    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.

    Source: https://cointelegraph.com/news/tether-1b-usdt-mint-bitcoin-price-73k

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