Tether minted an additional $1 billion. Last time, it helped Bitcoin rise to $73,000.
Tether (USDT), the world’s largest stablecoin, issued an additional $1 billion, bringing its market capitalization to over $110 billion, which could be a catalyst for Bitcoin (BTC)’s next move to reach an all-time high.
Will more USD Tether push Bitcoin prices higher?
The Tether Treasury minted $1 billion worth of USDT in the last 24 hours, bringing its annual total to $31 billion.
According to a May 17 post on Lookonchain, newly minted USDT was a big reason why the price of Bitcoin rose from $27,000 to $73,000.
Tether may directly contribute to Bitcoin’s rise, as it said it would invest 15% of its net profits into Bitcoin to diversify the stablecoin’s backing assets.
According to Bitinfocharts, Tether acquired 8,888 bitcoins worth $618 million on March 31, making the stablecoin issuer the seventh-largest bitcoin holder in the world. Tether’s wallet currently holds more than 78,317 BTC worth $5.18 billion, a year after announcing plans to diversify into Bitcoin.
Meanwhile, Bitcoin’s price action still relies heavily on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). Inflows into US Bitcoin ETFs have seen net positive outflows for the second week, bringing cumulative net flows to date to over $200 million, according to Dune.
Institutional inflows through ETFs have been an important part of Bitcoin’s current all-time high. By February 15, Bitcoin ETFs had surpassed $50,000, accounting for about 75% of new investments in the world’s largest cryptocurrency.
Related: M2 Money Supply Holds ‘Key’ to Bitcoin’s Next Move — Market Analyst
Bitcoin Breakout Confirmed — Daily Chart
According to TradingView, Bitcoin’s price action confirmed the $65,000 level on yesterday’s daily chart acting as strong support for BTC.
Another optimistic sign for investors is that Bitcoin maintains support on the monthly chart, according to a May 16 post from renowned cryptocurrency analyst Rekt Capital.
“Bitcoin has successfully converted existing major resistance into new major support.”
However, Bitcoin could temporarily correct below $63,500 before regaining the psychological mark of $70,000, according to ScorehoodAI’s artificial intelligence-based prediction algorithm, X wrote in a May 16 post.
“Now is the time for a temporary drop in the price of Bitcoin to around $63,000 to $63,500! “With $65,000 back and on our way to $70,000+, this would be a healthy step back to liquidate highly leveraged and greedy traders!”
According to Coinglass data, more than $1.76 billion in accumulated leveraged long positions could be liquidated if Bitcoin corrects below $63,500. Liquidation would be less than $63,000, or $1.87 billion.
Related: The cryptocurrency trader grew from $3,000 to $46 million in one month as PEPE prices soared.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
