Tether's $1 Billion Minting Could Trigger New Bitcoin Highs
Summary:
Tether (USDT), the world's leading stablecoin, has minted another $1 billion, pushing its market value to over $110 billion. This surge could stimulate a new all-time high for Bitcoin (BTC). The increase in USDT has significantly impacted the rise in Bitcoin's price from $27,000 to $73,000, with Tether aiming to invest 15% of its net profit into Bitcoin to broaden its backing assets. However, Bitcoin's market value still principally depends on institutional investments into Bitcoin exchange-traded funds (ETFs). Despite this, Bitcoin might experience a brief decline before exceeding the $70,000 mark.
Tether (USDT), the world's leading stablecoin, has recently issued an additional $1 billion in currency. This increase pushes its market value to over $110 billion, which could potentially trigger a new all-time high for Bitcoin (BTC). Will this further injection of USDT bolster the price of Bitcoin? Over the last 24 hours, Tether’s Treasury has minted $1 billion USDT, marking their annual total to $31 billion. This newly produced USDT contributed significantly to Bitcoin's price surge from $27,000 to $73,000, as cited by a May 17 post by Lookonchain. Tether might play a pivotal role in Bitcoin’s rally since the company aims to invest 15% of its net profit into Bitcoin to broaden the base of stablecoin’s supporting assets. On March 31, Tether invested in 8,888 Bitcoin amounting to $618 million, making it the world's seventh-largest Bitcoin holder, as per Bitinfocharts. Currently, Tether's digital wallet is home to 78,317 BTC valued at $5.18 billion, just a year after announcing its intention to switch to Bitcoin. However, Bitcoin’s market value still largely depends on institutional investments into Bitcoin exchange-traded funds (ETFs). U.S. Bitcoin ETFs have witnessed a second week of positive net inflows, accumulating over $200 million in net flows to date. ETFs contributed heavily to Bitcoin's latest rally, making up about 75% of new investments in Bitcoin, which crossed the $50,000 threshold by Feb. 15. Bitcoin's market value has confirmed the breakout on the daily chart, with $65,000 serving as a robust support level for BTC. Furthermore, the cryptocurrency has successfully converted its old resistance into support on the monthly chart. However, Bitcoin might undergo a brief dip to less than $63,500 before touching the $70,000 benchmark, suggests the AI-based prediction tool, ScorehoodAI. A likely decrease to less than $63,500 would result in a liquidation of over $1.76 billion worth of leveraged long positions, with total liquidations reaching $1.87 billion below the $63,000 line. The content in this article is neither financial advice nor a recommendation. Investing and trading come with inherent risks. Readers are advised to conduct their own independent research and to make decisions accordingly.
Published At
5/17/2024 8:21:40 PM
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