{"id":166235,"date":"2024-05-17T19:59:07","date_gmt":"2024-05-17T19:59:07","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=166235"},"modified":"2024-05-17T19:59:10","modified_gmt":"2024-05-17T19:59:10","slug":"tether-mints-another-1b-usdt-a-potential-catalyst-for-bitcoins-rally","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/tether-mints-another-1b-usdt-a-potential-catalyst-for-bitcoins-rally\/","title":{"rendered":"Tether Mints Another $1B USDT: A Potential Catalyst for Bitcoin\u2019s Rally"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">New Minting<\/span><\/strong><span data-preserver-spaces=\"true\">: Tether has minted an additional 1 billion USDT on the Tron Network, historically correlating with positive Bitcoin price movements.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Market Impact<\/span><\/strong><span data-preserver-spaces=\"true\">: The minting could potentially drive Bitcoin\u2019s price up, as Tether\u2019s market cap exceeds\u00a0$110 billion\u00a0and it holds a significant amount of Bitcoin.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Institutional Influence<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">: Despite recent outflows, institutional investments in spot Bitcoin ETFs show sustained interest, which may affect Bitcoin\u2019s price trajectory.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">Tether,<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0the issuer of the popular\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/stablecoins\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">stablecoin\u00a0<\/span><\/a><span data-preserver-spaces=\"true\">USDT,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">has\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/tronscan.org\/#\/contract\/TBPxhVAsuzoFnKyXtc1o2UySEydPHgATto\/transfers\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">minted\u00a0<\/span><\/a><span data-preserver-spaces=\"true\">an additional 1 billion USDT through its treasury.<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0This action, recorded on May 16 at 16:50 UTC, has sparked discussions within the crypto community about its potential impact on market dynamics, particularly for Bitcoin (BTC).<\/span><!--more--><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Tether Treasury minted 1B <a href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$USDT<\/a> again 13 hours ago.<a href=\"https:\/\/twitter.com\/hashtag\/TetherTreasury?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#TetherTreasury<\/a> has minted a total of 31B <a href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$USDT<\/a> on <a href=\"https:\/\/twitter.com\/hashtag\/TRON?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#TRON<\/a> and <a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#Ethereum<\/a> in the past year.<\/p>\n<p>These minted <a href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$USDT<\/a> drove the price of <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$BTC<\/a> from $27K to $73K.<a href=\"https:\/\/t.co\/2wFo2DEvz3\" target=\"_blank\">https:\/\/t.co\/2wFo2DEvz3<\/a> <a href=\"https:\/\/t.co\/IxEpBN36C0\" target=\"_blank\">pic.twitter.com\/IxEpBN36C0<\/a><\/p>\n<p>&mdash; Lookonchain (@lookonchain) <a href=\"https:\/\/twitter.com\/lookonchain\/status\/1791350139451478418?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">May 17, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Tether\u2019s CEO,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Paolo Ardoino,\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">clarified the transaction,<\/span><strong><span data-preserver-spaces=\"true\">\u00a0stating that the minted USDT was added to the inventory on the Tron Network<\/span><\/strong><span data-preserver-spaces=\"true\"> as an authorized yet unissued transaction. This minting comes after a previous issuance on April 16, amidst a market liquidity drain.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Over the past year, Tether Treasury has minted a staggering 31 billion USDT across the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/what-is-tron\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">TRON\u00a0<\/span><\/a><span data-preserver-spaces=\"true\">and Ethereum blockchains, as reported by Lookonchain.\u00a0<\/span><strong><span data-preserver-spaces=\"true\">The timing of Tether\u2019s minting coincides with a correction in Bitcoin\u2019s price<\/span><\/strong><span data-preserver-spaces=\"true\"> to the $64,600 range.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Historical data from CryptoQuant has shown a strong correlation between increases in USDT supply and positive movements in Bitcoin\u2019s price, suggesting that the minting could be super bullish for BTC.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The speculation is that the influx of new USDT could be utilized to bolster Bitcoin\u2019s price, a theory supported by the fact that previous mintings have been associated with Bitcoin reaching highs above $70,000.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Bitcoin\u2019s Price Correlation: Deciphering Tether\u2019s USDT Influence<\/span><\/h2>\n<p style=\"text-align: justify\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-166237\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/TetherUSDT-2.jpg\" alt=\"Tether Mints Another $1B USDT: A Potential Catalyst for Bitcoin\u2019s Rally\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/TetherUSDT-2.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/TetherUSDT-2-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/05\/TetherUSDT-2-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite these bullish signs,\u00a0<\/span><strong><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/what-is-bitcoin\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bitcoin\u2019s\u00a0<\/span><\/a><span data-preserver-spaces=\"true\">price has remained relatively stable, fluctuating between $64,000 and $66,000<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0in the past day. The price had previously varied between $60,000 and $62,000 until the release of US inflation data, which triggered a price jump to $66,000, hinting at a slowing inflation rate.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">With Tether\u2019s market capitalization now exceeding $110 billion, the latest minting could catalyze Bitcoin to reach new all-time highs.\u00a0<\/span><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">Tether\u2019s strategic initiative<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0to broaden its asset base has been underscored\u00a0<\/span><strong><span data-preserver-spaces=\"true\">by a notable allocation of 15% of its net earnings into Bitcoin<\/span><\/strong><span data-preserver-spaces=\"true\">, reinforcing the potential for market impact. By March 31, Tether\u2019s acquisition of 8,888 Bitcoin, with a market value of $618 million, has elevated it to the status of the world\u2019s seventh-largest holder of Bitcoin.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Bitcoin\u2019s price trajectory continues to be influenced by institutional investments, particularly the inflows into spot Bitcoin ETFs in the United States. Despite a second week of net outflows,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">the cumulative net flows have reached over $200 million<\/span><\/strong><span data-preserver-spaces=\"true\">, indicating sustained institutional interest.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Tether\u2019s latest minting of 1 billion USDT could be a bullish sign for Bitcoin, potentially driving the cryptocurrency\u2019s price to unprecedented levels. As the market digests this development, all eyes will be on Bitcoin\u2019s response to this influx of stablecoin supply.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR New Minting: Tether has minted an additional 1 billion USDT on the Tron Network, historically correlating with positive Bitcoin price movements. Market Impact: The minting could potentially drive Bitcoin\u2019s price up, as Tether\u2019s market cap exceeds\u00a0$110 billion\u00a0and it holds a significant amount of Bitcoin. Institutional Influence: Despite recent outflows, institutional investments in spot Bitcoin &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Tether Mints Another $1B USDT: A Potential Catalyst for Bitcoin\u2019s Rally\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/tether-mints-another-1b-usdt-a-potential-catalyst-for-bitcoins-rally\/#more-166235\" aria-label=\"More on Tether Mints Another $1B USDT: A Potential Catalyst for Bitcoin\u2019s Rally\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":166236,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4620,4844,4855,5030],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166235"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=166235"}],"version-history":[{"count":1,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166235\/revisions"}],"predecessor-version":[{"id":166239,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/166235\/revisions\/166239"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/166236"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=166235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=166235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=166235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}