Tether Adds Fresh $1 Billion USDT To Supply, Bitcoin To Rally Again?

according to CoinMarketCap dataBitcoin rose 2.9% on Friday, trading above $67,000 for the first time since April 24. The first cryptocurrency’s strong price performance was attributed to low inflation reported in the latest Consumer Price Index (CPI) data.

However, Bitcoin is an asset subject to a variety of forces, and according to a report from blockchain analytics platform LookonChain, BTC may soon see a resurgence in price as the supply of certain stablecoins increases.

Can USDT replicate Bitcoin’s surge effect?

in X Post On Friday, LookonChain reported that the Tether Treasury has issued an additional 1 billion USDT, suggesting that demand for stablecoins is steadily growing. USDT, the third-largest cryptocurrency, is also the most dominant stablecoin in the cryptocurrency space with a market cap of $111.25 billion.

The USDT token is notable for having recorded significant growth last year, with over 31 billion new tokens being issued on the Tron and Ethereum networks. Interestingly, LookonChain reveals that this rise in USDT market share has contributed significantly to Bitcoin’s rise from $27,000 to $73,000 in the past 15 months.

The theory behind this relationship stems from the increased liquidity that traders receive from investing in USDT. This increased market liquidity can change the supply and demand conditions for Bitcoin, often leading to an increase in the price of BTC.

Following the recent issuance of 1 billion USDT by the Tether Treasury, most investors and spectators may be expecting a similar boost to Bitcoin prices, especially as the cryptocurrency bull market continues.

However, Bitcoin’s price over the coming months will likely be influenced by other factors, such as the BTC spot exchange-traded fund (ETF) market. Data from SoSoValue, Net inflows reached $177.01 million on Friday, bringing the total value of the Bitcoin spot ETF market to $12.58 billion. As Larger traditional lenders If it captures a piece of this new market, Bitcoin is expected to experience tremendous levels of demand, which will lead to a significant price increase.

BTC Price Overview

At the time of writing, Bitcoin is trading at $66,853, reflecting a 9.64% rise over the last week. The crypto market leader is gaining momentum to break out of the 67,000 resistance zone and is currently in a state of consolidation.

Based on historical price data, Bitcoin is likely to remain the “diamond” in the cryptocurrency bull market for many investors, but all investors and traders should do their due diligence before jumping into the market.

Bitcoin
BTC is trading at $66,888.28 on the daily chart | Source: BTCUSDT chart on Tradingview.com

Featured image from The Independent, chart from Tradingview

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