Bitcoin reaches new yearly high amid Tether Treasury's creation of 1 billion USDT. Speculation arises over potential market impact.
Bitcoin surged above the $65,000 threshold, marking a fresh yearly pinnacle. This upswing coincided with the initiation of 1 billion USDT by the Tether Treasury.
This development has sparked widespread conjecture and profound interest throughout the cryptocurrency sphere.
Does the Recent USDT Mint Trigger an Uptick in the Crypto Market?
Whale Alert, a platform for blockchain analytics, disclosed the emergence of the latest tranche of minted USDT on Sunday. Consequently, it has incited discussions about its plausible ramifications on Bitcoin's valuation. Historically, there has been a correlation between Tether's minting activities and substantial surges in Bitcoin's price.
In January, Tether unleashed 2 billion USDT within a span of ten days, coinciding with a notable uptrend in Bitcoin's valuation. This trend was also fueled by anticipations surrounding the introduction of spot Bitcoin exchange-traded funds (ETFs). This pattern has prompted some to deliberate on potential Bitcoin price fluctuations.
Amidst the market conjecture, Paolo Ardoino, the CEO of Tether, offered some elucidation. He clarified that the $1 billion USDT is designated for forthcoming issuance requests and chain swaps, rather than immediate impacts on the market.
Ardoino's explanation sheds light on the operational intricacies of blockchain technology. It exemplifies how digital assets can traverse across multiple blockchains to cater to market demands and bolster liquidity.
Tether is on the verge of reaching a $100 billion market capitalization. Its dominance in the stablecoin realm is evident, commanding over 70% of market share, as per DefiLlama.
Nevertheless, Tether's supremacy has come under scrutiny. Last month, JPMorgan Chase & Co. voiced apprehensions regarding Tether's escalating market dominance.