Paolo Ardoino, Tether (USDT) CEO, has broken silence about Tether’s correlation with Bitcoin (BTC), the world’s leading digital asset. According to Ardoino, Tether’s market capitalization has risen significantly recently. This surge is somehow related to BTC flipping $100,000.
USDT: A Key Player in the Crypto Ecosystem
Ardoino says Tether’s market cap grew by around $16 billion within three weeks. He maintains that a notable catalyst to the growth can be linked to the significant inflows into spot Bitcoin exchange-traded funds (ETFs).
The Tether CEO says the ETF market saw an uptick in activity as many institutional investors embraced Bitcoin after the U.S. election. Additionally, Michael Saylor’s MicroStrategy’s massive purchase of Bitcoin also supported the inflow.
According to Ardoino, more investors snapping Bitcoin and investing in ETF products positively affected Tether’s USDT. Since Tether is the largest U.S. dollar-pegged stablecoin, many investors and traders have favored USDT.
When moving cash from the traditional financial world into the digital crypto space, USDT is usually the medium for such transactions. This has supported stablecoin is growing rapidly in market capitalization.
Ripple Effect on Bitcoin’s Success
According to the report, Tether’s USDT recently soared past $200 billion per the total supply for U.S. dollar-pegged stablecoins. USDT remains the most popular stablecoin globally and has benefitted from Bitcoin’s positive sentiment and bullish run.
In the days after the U.S. election and Donald Trump’s victory, the price of BTC soared astronomically, and the psychological $100,000 price mark was tested for days. As many investors, including new entrants, flocked to profit from the bullish run, they had first to swap their cash for USDT.
ETF Inflows Bolster USDT
Meanwhile, Farside Investor data shows that from Monday till Wednesday this week, when Bitcoin finally breached $100,000, ETF products registered significant inflows. The total inflows on the days above were $353.6 million, $676 million, and $556.8 million, respectively.
The data supports Ardoino’s explanation of how ETF products have supported USDT’s surge. At this writing, USDT is battling market volatility and trading at $1.00, a 0.01% rise in the last 24 hours. In earlier trading, the stablecoin had plunged to a low of $1.0001 before its rebound to its current level.
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