As Bitcoin skyrockets past the $65,000 threshold, the new highest since 2021 has coincided with the Tether Treasury’s minting of 1 billion USDT, sparking speculation and discussions across the crypto market.
Link Between Tether’s Actions and Bitcoin’s Price
The cryptocurrency community closely monitors Tether’s activities, particularly its minting of USDT, as it historically correlates with significant upticks in Bitcoin’s value. The recent creation of 1 billion USDT has reignited discussions about potential effects on Bitcoin’s price. Analysts point to a historical pattern where Tether’s issuance aligns with notable rises in Bitcoin’s value.
Renowned crypto investor named Elja asked the community in an X post “$1,000,000,000 USDT got minted. Which coin are they planning to pump?”
Bitcoin’s Price
While Bitcoin has surged past $65,000, it has not yet surpassed its all-time high in U.S. dollar terms, recorded at over $69,000 on Coinbase in November 2021. The report notes a potential correlation between Bitcoin’s performance and the U.S. Dollar Index, indicating an upward trend in the index, which could impact Bitcoin.
The spike in Bitcoin’s price has led to a notable increase in liquidations of leveraged bitcoin positions. The volatility resulted in the liquidation of over $80 million in bitcoin positions, with the majority being shorts. The overall crypto market saw more than $160 million in liquidated short positions in the last 24 hours.
Tether CEO Clarifies Purpose
Addressing the speculation, Paolo Ardoino, Tether’s CEO, clarified that the newly minted $1 billion USDT is for future issuance requests and chain swaps.
In a tweet, Ardoino explained, “1 billion USDT inventory replenished on the Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period’s issuance requests and chain swaps.”
Moreover, Tether has crossed the significant milestone of a $100 billion market capitalization, showcasing a 9% year-to-date growth. Tether’s ascent to a $100 billion market cap underscores its dominance in the stablecoin market, holding over 70% market share, according to DefiLlama.
Not to forget, Tether’s rising market cap and dominance were previously scrutinised by JPMorgan analysts, expressing concerns that its growing market share might lead to issues related to regulatory compliance and transparency.
This news is republished from another source.
