Bitcoin Price Correction May End Soon as Tether Issues $1 Billion USDT.

The Bitcoin (BTC) price correction that began on September 14 may soon come to an end, potentially triggering a new rally. One of the primary reasons for this short-term shift is the expected announcement from the U.S. Federal Reserve regarding interest rate cuts on September 18.

Additionally, the leading stablecoin issuer, Tether, is set to increase market expectations by issuing $1 billion in USDT on Monday.

Tether's $1 Billion USDT Issuance and Its Market Impact

On September 16 at 01:50, Tether issued $1 billion in USDT. Historically, such developments have been seen as positive signs for the cryptocurrency market, typically influencing prices upward.

According to Santiment, Tether's (USDT) total supply on exchanges has increased by $8.06 billion since 2024. In the last 24 hours, an additional $1 billion in USDT has been added to the stablecoin supply on exchanges.

Interestingly, the active stablecoin deposits to exchanges have remained relatively stable since 2024, ranging between 9,000 and 14,000.

Can Bitcoin Rise Before Fed's Interest Rate Cut?

Since September 7, Bitcoin's price has risen by 12%, reaching a local peak on September 14. A subsequent correction of around 3% has brought BTC to approximately $58,600. The anticipated Fed interest rate cut on September 18 is emerging as a significant factor that could affect BTC's price.

According to the FedWatch tool, the

probability of a 50 basis point rate cut

is estimated at 59%. Regardless of the

cut's size, cryptocurrency investors

are focusing on two potential

scenarios:

Risk-on scenario: Financial

markets, both traditional and

crypto, may rally. In this scenario,

Bitcoin, Ethereum (ETH), and other

cryptocurrencies are expected to

continue gaining value, with BTC

possibly retesting $65,000 before

reclaiming $70,000 as a support level. Risk-off outlook: Investors

may steer their assets towards

safer instruments like cash or stablecoins. This scenario might

trigger panic selling in both stock

and crypto markets.