Tether issued $1 billion worth of USDT in the last 24 hours, increasing annual volume to $31 billion
According to a May 17 post from Lookonchain, this significant release of USDT contributed to the price of Bitcoin rising from $27,000 to $73,000.
Tether also invests directly in Bitcoin. The company plans to invest 15% of its net profits in Bitcoin to diversify its stablecoin reserve assets.
As of March 31, Tether had acquired 8,888 BTC worth $618 million, making it the seventh largest holder of Bitcoin in the world, according to Bitinfocharts.
The Tether wallet currently holds over 78,317 BTC worth over $5.18 billion, a year after announcing its diversification plan.
Bitcoin price movements are also influenced by institutional investments in spot Bitcoin exchange-traded funds (ETFs).
These institutional inflows have played a critical role in the current rise in Bitcoin's price to new all-time highs.
By February 16, Bitcoin exchange-traded funds (ETFs) accounted for about 75% of new investments in Bitcoin, when its price topped $50,000.
On May 16, Bitcoin price confirmed a breakout on the daily chart, with the $65,000 level acting as strong support, according to TradingView.
A senior analyst at the Rocket team noted on May 16 that Bitcoin has turned its old resistance into support on the monthly chart, indicating a bullish trend.
However, Bitcoin could still experience a temporary correction below $63,500 before regaining the psychological $70,000 mark.
A pullback to around $63,000-$63,500 could be considered a healthy correction to liquidate high-leverage positions.
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