Tether Mints 1 Billion USDT as Bitcoin (BTC) Price Stalls

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Tether Treasury is cast According to data from blockchain tracker Whale Alert, the amount is a whopping 1 billion USDT.

The move comes as the price of Bitcoin, the top cryptocurrency by market capitalization, appears to be volatile.

It is currently struggling to break out of the $53,000 resistance level, which is a key point in the price trajectory.

Temporary inventory replenishment

Tether CEO Paolo Ardoino XPosted on social media Network to reveal the nature of this large-scale USDT minting.

Ardoino explained that the 1 billion USDT represents a replenishment of inventory on the Ethereum network, stressing that this is a “authorized but not issued transaction.”

This means that the minted USDT will not be immediately released to the market, but instead will serve as inventory for future issuance requests and chain swaps.

This move by Tether shows the growing demand for USDT, which plays a vital role in liquidity in the crypto market.

Bitcoin price conundrum

Despite significant minting of USDT, Bitcoin price is showing signs of stagnation. The cryptocurrency recently encountered stiff resistance at the $53,000 level, a key level that has historically influenced price movements.

After briefly soaring to nearly $53,000, Bitcoin experienced a sharp decline, dropping its price to $50,700.

The minting of large amounts of USDT by Tether has historically been seen by some market participants as a harbinger of increased liquidity and potential price volatility in the Bitcoin market.

The rationale behind this view is that an increase in the supply of USDT could encourage more large-scale cryptocurrency trading, especially in Bitcoin, which in turn would influence Bitcoin price trends. That means it can have an impact. However, Bitcoin has recently struggled to break above the $53,000 resistance level, and technical patterns suggest a potential consolidation below this threshold.

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Alex Dovnya

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