Tether Adds Fresh $1 Billion USDT To Supply – Bitcoin To Rally Again?
18 Maio 2024 - 10:00AM
NEWSBTC
According to data from CoinMarketCap, Bitcoin rose by 2.9% on
Friday to trade above $67,000 for the first time since April 24.
This positive price performance by the maiden cryptocurrency has
been attributed to the low inflation levels reported in the latest
Consumer Price Index (CPI) data. However, Bitcoin is an asset
subject to the influence of several forces. According to a report
by blockchain analysis platform LookonChain, BTC may soon
experience another price rally following an increase in the supply
of a specific stablecoin. Related Reading: Unstoppable Bitcoin?
CryptoQuant’s CEO Foresees Bull Run Extending To 2025 Can
USDT Replicate Surging Effect On Bitcoin? In an X post on
Friday, LookonChain reported that the Tether Treasury has minted an
additional 1 billion USDT indicating a consistent rising demand for
the stablecoin. USDT which ranks as the third largest
cryptocurrency doubles as the most dominant stablecoin in the
crypto space with a market cap value of $111.25 billion. The
USDT token has famously recorded much growth in the last year with
over 31 billion new tokens minted on the Tron and Ethereum network.
Interestingly, LookonChain reveals that this rise in USDT market
share contributed significantly to Bitcoin’s ascent from $27,000 to
$73,000 in the past fifteen months. The theory behind this
relationship stems from an increase in traders’ liquidity provided
by investments in USDT. This increased market liquidity can
alter the status of Bitcoin’s supply and demand and oftentimes lead
to a rise in BTC’s price. Following the most recent 1 billion
USDT minted by the Tether Treasury, most investors and
spectators could be expecting a similar boosting effect on
Bitcoin’s price, especially with the crypto bull season in
play. However, Bitcoin’s price in the coming months is still
likely to be influenced by other factors such as the BTC spot
exchange-traded fund (ETF) market. According to data from
SoSoValue, net inflows on Friday reached $177.01 million bringing
the total value of the Bitcoin spot ETF market to $12.58 billion.
As more major traditional finance players gain a piece of this
novel market, Bitcoin is expected to experience monumental levels
of demand which will translate into weighty price gains. Related
Reading: Bitcoin Whales Quiet Down – Here’s Why And What It Means
For The Market BTC Price Overview At the time of writing, Bitcoin
was trading at $66,853, reflecting a 9.64% gain in the last week.
The crypto market leader is currently in a consolidation state as
it gathers momentum to break past the 67,000 resistance zone.
Bitcoin is likely to remain the “diamond” of the crypto bull season
for many investors based on historical price data. However, there
remains a need for proper research by all investors and traders
before engaging the market. Featured image from The
Independent, chart from Tradingview
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