Originally published on: May 17, 2024
Tether, the leading stablecoin with a market capitalization exceeding $110 billion, has recently minted another $1 billion in USDT. This move could potentially fuel Bitcoin’s surge to new all-time highs, reminiscent of the jump from $27,000 to $73,000 seen earlier.
In the past 24 hours alone, Tether’s treasury has generated $1 billion in USDT, adding up to a total of $31 billion minted this year. This influx of stablecoins has historically played a significant role in propelling Bitcoin’s price upward as indicated by a post from Lookonchain.
Moreover, Tether’s strategic decision to allocate 15% of its net profits into Bitcoin has not gone unnoticed. With the recent acquisition of 8,888 BTC, valued at $618 million, Tether has solidified its position as the seventh-largest Bitcoin holder worldwide. Holding over 78,317 BTC in its wallet, Tether’s foray into Bitcoin diversification continues to draw attention.
On the flip side, institutional inflows into Bitcoin exchange-traded funds (ETFs) remain a key driver of the cryptocurrency’s price trajectory. Despite some net positive outflows from US Bitcoin ETFs in recent weeks, institutional interest in Bitcoin remains strong.
While Bitcoin’s price action suggests a possible correction to around $63,500 before retesting the $70,000 level, market analysts remain optimistic about its long-term outlook. The monthly chart indicates a favorable shift in Bitcoin’s momentum, with old resistances turning into new support levels.
As always, it’s essential to note that this article does not provide investment advice. Any decision regarding investments should be made after careful consideration and thorough research.
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