Tether (USDT), the largest stablecoin in the world, has generated an additional $1 billion, pushing its market capitalization above $110 billion. This surge in USDT issuance could potentially drive Bitcoin (BTC) to new all-time highs.
Within the past 24 hours, Tether’s Treasury has minted $1 billion worth of USDT, bringing its yearly total to $31 billion. According to Lookonchain, this recent issuance of USDT was a significant factor in Bitcoin’s price surge from $27,000 to $73,000.
In addition to boosting Bitcoin’s price indirectly, Tether has also stated its intention to invest 15% of its net profit into Bitcoin. This move aims to diversify the backing assets of the stablecoin. Tether made headlines on March 31 when it acquired 8,888 Bitcoin worth $618 million, making it the seventh-largest Bitcoin holder globally. Currently, Tether’s wallet holds over 78,317 BTC valued at over $5.18 billion, a year after announcing its plan to diversify into Bitcoin.
The price movement of Bitcoin continues to heavily depend on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). The United States Bitcoin ETFs have experienced their second consecutive week of net positive outflows, accumulating over $200 million in cumulative net flows so far, as reported by Dune.
Institutional inflows from ETFs played a significant role in the recent Bitcoin rally to new all-time highs. By February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the world’s largest cryptocurrency as it surpassed the $50,000 mark.
On the daily chart, Bitcoin’s price action has confirmed a breakout, with the $65,000 level acting as a strong support for BTC, according to TradingView. Moreover, on the monthly chart, Bitcoin has successfully turned its previous resistance into support, which is seen as a bullish sign by popular crypto analyst Rekt Capital.
However, there is still a possibility of a temporary correction for Bitcoin, potentially falling below $63,500 before reclaiming the psychological mark of $70,000, according to the predictions algorithm of ScorehoodAI. If this correction were to occur, it could result in the liquidation of over $1.76 billion worth of cumulative leveraged long positions, with Coinglass data suggesting that liquidations could reach $1.87 billion if the price drops below $63,000.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.