Markets
1 billion USDT minted by Tether Treasury: market awaits impact
Through its treasury, Tether, the issuer of USDT, minted a significant amount of its stable coin. On-chain data reveals that Tether Treasury minted 1 billion USDT on May 16 at 16:50 UTC.
Given Tether’s leading position in the market, many think that this large USDT issuance could impact crypto market movements.
Tether’s recent USDT minting and its market implications
Paolo Ardoino, CEO of Tether, clarified the context of this substantial mintage. He indicated that 1 billion USDT was added to the Tron Network’s inventory, specifying that it was an authorized transaction that had not yet been issued.
“Which means this value will be used as stock for next period’s issuance requests and chain swaps,” he said. added.
See more information: How to Buy USDT in 3 Easy Steps – A Beginner’s Guide
The last time Tether minted USDT was on April 16, when the market experienced a loss of liquidity. According to a report from on-chain analytics platform Lookonchain, Tether Treasury minted 31 billion USDT last year. It minted these amounts on the TRON and Ethereum blockchains.
Interestingly, Tether minted these USDT when Bitcoin (BTC) price corrected to the $64,600 range. Since the end of 2021, each increase in the supply of USDT has generally had a positive effect on the price evolution of Bitcoin.
Correlation between the circulating supply of USDT and the price of Bitcoin. Source: CriptoQuant
CryptoQuant data reveals a high correlation between USDT Supply and Bitcoin Price Movementleading to an increase in volume and dynamic environment for Bitcoin price. Therefore, this sparks speculation among the crypto community that the new funds could be used to increase the price of Bitcoin. Furthermore, the Lookonchain report indicated that USDT minted last year pushed Bitcoin to surpass the $70,000 range.
“These minted USDT drove the price of BTC from $27,000 to $73,000,” he said he wrote.
See more information: Bitcoin Price Prediction 2024/2025/2030
Despite this speculation, the price of Bitcoin has stabilized between $64,000 and $66,000 over the past 24 hours. Last week, BTC fluctuated between $60,000 and $62,000 until the release of inflation data in the USA. BeInCrypto reported a jump in Bitcoin price from $62,000 to $66,000 after April inflation data release suggests inflation may be slowing.
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