Cryptocurrencies

Tether (USDT), the world’s largest stablecoin, has issued another $1 billion,…

Tether (USDT), the world’s largest stablecoin, has issued another $1 billion, pushing its market capitalization to over $110 billion, which could spur Bitcoin’s (BTC) next move to all-time highs.

Will more USD Tether boost Bitcoin price?

The Treasury minted $1 billion worth of USDT in the past 24 hours, bringing its annual total to $31 billion.

The newly minted USDT was a big reason why Bitcoin’s price rose from $27,000 to $73,000, according to a May 17 post from Lookonchain:

Bitcoin chart with newly minted USDT. Source: LeConchain

Tether could also directly contribute to Bitcoin’s rise, as the company said it will invest 15% of its net profits in Bitcoin to diversify the assets backing the stablecoin.

Tether held 8,888 bitcoins worth $618 million on March 31, making the stablecoin issuer the seventh-largest bitcoin holder in the world, according to Bitinfocharts. Tether’s wallet currently holds over 78,317 bitcoins worth over $5.18 billion, one year after announcing its plan to diversify into bitcoin.

Tether (Usdt), The World'S Largest Stablecoin, Has Issued Another $1 Billion,...
Tether USDT, market capitalization, all-time chart. Source: CoinMarketCap

Meanwhile, Bitcoin price movement remains largely dependent on institutional inflows into Bitcoin exchange-traded funds (ETFs). Inflows from U.S. Bitcoin ETFs saw their second week of positive net outflows, amassing more than $200 million in cumulative net inflows to date, according to Dionne.

Tether (Usdt), The World'S Largest Stablecoin, Has Issued Another $1 Billion,...
Bitcoin ETF weekly net flows in dollars. Source: Dune

Institutional inflows from ETFs have been a significant part of Bitcoin’s current rally to all-time highs. By February 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it crossed the $50,000 mark.

Related: M2 Money Supply “Holds the Key” to Bitcoin’s Next Step – Market Analyst

Bitcoin hack confirmed — daily chart

Bitcoin price action confirmed yesterday’s breakout on the daily chart, as the $65,000 level appears to be acting as strong support for Bitcoin, according to TradingView.

Tether (Usdt), The World'S Largest Stablecoin, Has Issued Another $1 Billion,...
BTC/USDT, breakout on the 1-day chart. Source: Trading View

Another bullish sign for investors is that Bitcoin flipped its old resistance into support on the monthly chart, according to a May 16 post by popular cryptocurrency analyst Rekt Capital:

“Bitcoin has successfully turned old major resistance into new major support.”

Tether (Usdt), The World'S Largest Stablecoin, Has Issued Another $1 Billion,...
BTC/USD, 1-month chart. Source: Reckitt Capital

However, Bitcoin could still see a temporary correction to below $63,500 before reclaiming the $70,000 psychological mark, ScorehoodAI’s AI-based prediction algorithm wrote in a May 16 post:

“Now is the time for a temporary pullback to around $63,000 – $63,500 for Bitcoin! Since we recovered $65,000 and are on our way to over $70,000, this will be a healthy pullback to clear out the greedy, highly leveraged traders!”

Bitcoin’s potential correction below $63,500 would lead to the liquidation of over $1.76 billion of cumulative leveraged long positions, according to Coinglass data. Liquidations will reach $1.87 billion below the level of $63,000.

Tether (Usdt), The World'S Largest Stablecoin, Has Issued Another $1 Billion,...
Bitcoin exchange filter map. Source: Coinglas

Related: Cryptocurrency Trader Turns $3K into $46M in One Month as PEPE Prices Rise

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.

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