Tether (USDT), the largest stablecoin in the world, has generated an additional $1 billion, pushing its market capitalization above $110 billion. This development has the potential to fuel Bitcoin’s (BTC) surge to new all-time highs.
The Treasury of Tether has minted $1 billion worth of USDT within the last 24 hours, bringing the total for the year to $31 billion. This increase in newly minted USDT played a significant role in the rise of Bitcoin’s price from $27,000 to $73,000, as reported by Lookonchain on May 17.
Furthermore, Tether has the ability to directly contribute to Bitcoin’s rally. The company has announced that it will allocate 15% of its net profit to invest in Bitcoin, diversifying the assets backing the stablecoin. In fact, Tether became the seventh-largest holder of Bitcoin in the world when it acquired 8,888 BTC worth $618 million on March 31. Currently, Tether’s wallet holds over 78,317 BTC with a value exceeding $5.18 billion, one year after revealing its plan to diversify into Bitcoin.
Meanwhile, the price movement of Bitcoin continues to rely heavily on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). The United States Bitcoin ETFs experienced net positive outflows for the second consecutive week, accumulating over $200 million in cumulative net flows thus far, according to Dune.
Institutional inflows from ETFs played a significant role in Bitcoin’s recent surge to new all-time highs. By February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the world’s largest cryptocurrency, surpassing the $50,000 mark.
The price action of Bitcoin has confirmed a breakout on the daily chart, with the $65,000 level serving as strong support for BTC. Additionally, on the monthly chart, Bitcoin has successfully turned its old resistance into support, according to popular crypto analyst Rekt Capital.
However, there is still a possibility of a temporary correction for Bitcoin, with a potential drop below $63,500 before reclaiming the psychological mark of $70,000. The artificial intelligence-based predictions algorithm of ScorehoodAI suggests this scenario in a recent report.
In the event of a Bitcoin correction below $63,500, over $1.76 billion worth of cumulative leveraged long positions would be liquidated, according to Coinglass data. If the price falls below $63,000, liquidations would reach $1.87 billion.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.