Tether’s USDT (USDT), the world’s largest stablecoin, has minted another $1 billion, bringing its market capitalization above $110 billion, which could catalyze Bitcoin’s (BTC) next move to new all-time highs.
Will more USDT boost Bitcoin’s price?
Tether’s treasury has minted $1 billion worth of USDT during the past 24 hours, bringing its yearly total to $31 billion.
The newly minted USDT was a big reason why Bitcoin price climbed from $27,000 to $73,000, according to a May 17 post from Lookonchain:
Bitcoin chart with newly-minted USDT. Source: Lookonchain
Tether could also directly contribute to Bitcoin’s rally. The company said it would invest 15% of its net profit in Bitcoin to diversify the stablecoin’s backing assets.
Tether acquired 8,888 BTC on March 31, worth $618 million, making the stablecoin issuer the seventh-largest Bitcoin holder in the world, according to Bitinfocharts. Tether’s wallet currently holds over 78,317 BTC, worth over $5.18 billion, one year after announcing its plan to diversify into Bitcoin.
Tether USDT, market cap, all-time chart. Source: CoinMarketCap
Meanwhile, Bitcoin’s price action is still largely dependent on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). The United States Bitcoin ETFs saw their second week of net positive outflows, amassing over $200 million worth of cumulative net flows so far, according to Dune.
Bitcoin ETF net flows, weekly, in dollars. Source: Dune
Institutional inflows from ETFs were a significant part of the current Bitcoin rally to new all-time highs. By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.
Related: M2 money supply ‘holds the key’ for Bitcoin’s next move — Market analyst
Bitcoin breakout confirmed — daily chart
Bitcoin’s price action has confirmed May 16’s breakout on the daily chart, where the $65,000 mark seems to act as a strong support for BTC, according to TradingView.
BTC/USDT, breakout on 1-day chart. Source: TradingView
Another bullish sign for investors is that Bitcoin has flipped its old resistance…
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