Tether gains 1 billion USDT as Bitcoin (BTC) price stagnates
According to data from blockchain tracker Whale Alert, the Tether Treasury minted a whopping 1 billion #USDT. . The action comes at a time when the price of Bitcoin, the leading cryptocurrency by market capitalization, appears to be in an unstable state. It is currently struggling to overcome the $53,000 resistance level, which is a key point in its price trajectory.
Tether CEO Paolo Ardoino took to social media network X to clarify the nature of this large-scale USDT minting operation. Ardoino explained that the 1 billion USDT represents an inventory replenishment on the Ethereum Network, emphasizing that this is an “authorized but not issued transaction.” This means that minted USDT will serve as inventory for upcoming issuance requests and on-chain swaps, rather than being immediately released to the market. This move by Tether is a sign of growing demand for USDT, which plays a key role in the liquidity of the cryptocurrency market.
The minting of large amounts of USDT by Tether was previously seen by some market participants as a precursor to increased liquidity and potential price volatility in the Bitcoin market. The reason behind this view is that increasing USDT supply could facilitate larger transactions of cryptocurrencies, especially Bitcoin, which in turn could influence Bitcoin's price dynamics.
