TL;DR
- Tether has minted over $1.3 billion in USDT since the crypto market bottom on August 5, transferring these funds to centralized exchanges like Kraken and Coinbase.
- The injection of USDT suggests potential buying pressure. Since the recent bottom, Bitcoin has recovered over 21%, currently trading around $60,000.
- BTC needs to surpass the $65,000 barrier, a key resistance level for short-term large holders, to continue its upward trend.
Tether, the issuer of the leading stablecoin in the market, has made a significant issuance of over $1.3 billion in USDT since the recent market bottom recorded on August 5. This new issuance has been transferred to some of the most well-known centralized exchanges, such as Kraken, Coinbase, OKX, and Bullish, according to a report published on August 9 by Lookonchain.
The injection of USDT into these exchanges could signal imminent buying pressure, given that stablecoins play a crucial role as a bridge between fiat money and cryptocurrencies. Since the mentioned market bottom, Bitcoin’s price has experienced a recovery of more than 21%, currently trading around $60,000. This increase follows Bitcoin reaching a five-month low above $49,500 before starting to recover.
1.3B $USDT has been transferred from #TetherTreasury to exchanges since the market crash on Aug 5! pic.twitter.com/BYtMqgVRyZ
— Lookonchain (@lookonchain) August 9, 2024
Bitcoin Needs to Break the $65,000 Barrier
Despite the improvement, Bitcoin still needs to surpass a key resistance level, situated between $64,000 and $65,000. This price range represents the realized value for short-term large BTC holders, which could act as a barrier to further appreciation of the asset. Bitcoin’s ability to break through this threshold is crucial for maintaining its upward trajectory in the short term.
Additionally, Bitcoin exchange-traded funds (ETFs) in the United States have also recorded positive net inflows, with a total of $194 million in positive flows on August 8, according to Farside Investors data. These inflows could play an important role in BTC’s price increase, contributing to its strength in the market.
Tether’s USDT issuance and positive ETF flows could provide the necessary momentum for BTC to surpass the critical resistance level. However, the market remains volatile, and Bitcoin’s ability to stay above this threshold will be decisive for its future evolution.
