Markets
Tether Boosts Liquidity With $1 Billion USDT Coins in 12 Hours, Crypto Market Bullish Soon?
Liquidity appears to be returning to the crypto market as the price of bitcoin has soared to $67,000 amid a cooling market. US CPI Data. There has been a strong influx of stablecoins on cryptocurrency exchanges in recent times. This could likely serve as a strong catalyst for the crypto market recovery to come.
Tether mints $1 billion in USDT
According to data from Lookonchain, Tether Treasury recently minted an additional $1 billion worth of USDT tokens, with the last minting occurring 13 hours ago. Over the past month, Tether has minted an additional $3 billion in USDT, with its market cap rising from $108 billion to now over $111 billion.
Tether Treasury minted a total of 31 billion USDT tokens on the TRON and Ethereum blockchains last year. These newly created USDT tokens played a significant role in influencing the price of Bitcoin (BTC), contributing to its rise from $27,000 to $73,000.
Tether Treasury minted 1B $USDT again 13 hours ago.#TetherTreasury minted a total of 31B $USDT about #TRON It is #Ethereal last year.
These brothers-in-law $USDT boosted the price of $BTC from $27k to $73k.https://t.co/2wFo2DEvz3 pic.twitter.com/IxEpBN36C0
– Lookonchain (@lookonchain) May 17, 2024
Thus, the increase in stablecoin liquidity could trigger another new rally for Bitcoin and the broader cryptocurrency market.
According to CriptoQuant, a recent increase in stablecoin flows has been observed, indicating a notable increase in liquidity inflow into the cryptocurrency market. The influx of liquidity has the potential to influence the supply and demand dynamics of Bitcoin, potentially leading to greater price volatility in the market.
Courtesy: CryptoQuant
Bitcoin liquidity cycle still at lower limit
Cryptocurrency market analyst Willy Woo has provided insights into Bitcoin’s current liquidity cycle, describing it as similar to a warm-up phase.
According to Woo, Bitcoin is currently consolidating below its all-time highs, with indicators suggesting relatively low long-term risk during this period. He emphasizes that the risk factor typically increases when significant market activity occurs, implying that the current phase remains relatively stable.
Here’s the overview of where #Bitcoin It’s in its liquidity cycle… it’s still doing warm-up exercises.
It is consolidating at all-time highs, during this period the long-term risk signal is quite low. The risk only starts to rise after the floodgates open. pic.twitter.com/dN35qGoWZs
– Willy Woo (@woonomic) May 17, 2024