🔥🔥🔥 #tether mints another $1B — Last time, it helped Bitcoin climb to $73K
Bitcoin has transformed its former resistance into support as Tether’s USDT market cap grows rapidly in 2024.
Tether (USDT), the world’s largest #stablecoin , has minted another $1 billion, pushing its market capitalization above $110 billion. This surge could potentially drive Bitcoin's ($BTC ) price to new all-time highs.
The Tether treasury minted $1 billion worth of USDT in the last 24 hours, raising its yearly total to $31 billion. This increase in USDT was a major factor in Bitcoin’s climb from $27,000 to $73,000, as reported by Lookonchain on May 17.
Tether's impact on Bitcoin extends further. The company plans to invest 15% of its net profits into Bitcoin to diversify its asset backing. On March 31, Tether acquired 8,888 BTC worth $618 million, becoming the seventh-largest Bitcoin holder, according to Bitinfocharts. Currently, Tether holds over 78,317 BTC, valued at over $5.18 billion, a year after announcing its diversification plan.
Bitcoin's price movement is still influenced by institutional inflows into spot Bitcoin exchange-traded funds (#ETFs ). U.S. Bitcoin ETFs have seen two consecutive weeks of net positive inflows, accumulating over $200 million, as per Dune.
Institutional investments through ETFs have significantly contributed to Bitcoin’s recent rally to new highs. By February 15, Bitcoin ETFs accounted for about 75% of new investments in Bitcoin as it surpassed the $50,000 mark.
On May 16, Bitcoin confirmed a breakout on the daily chart, establishing $65,000 as strong support, according to TradingView. Crypto analyst Rekt Capital also noted that Bitcoin has turned its previous resistance into support on the monthly chart.
Bitcoin may temporarily drop below $63,500 before rising to $70,000, according to ScorehoodAI. This correction could liquidate over $1.76 billion in leveraged long positions, with a drop below $63,000 potentially increasing liquidations to $1.87 billion, based on Coinglass data.
Source - cointelegraph.com
