The post Tether Minting Fuels Bitcoin Price Surge: Correlation or Coincidence? appeared first on Coinpedia Fintech News
Bitcoin has surged beyond $65,000, paralleled by the Tether Treasury’s issuance of an unprecedented 1 billion USDT. This alignment sparks conversations within the crypto community, given Tether’s historical connection with notable upswings in Bitcoin’s value, prompting renewed discussions on its potential impact.
Why the sudden interest? Could this be another instance of the same pattern? Or is it simply a coincidence?
Dive deeper to discover the latest developments and expert opinions.
Unraveling the Mystery
Renowned crypto investor Elja stirred the conversation, asking the community in a post: “$1,000,000,000 USDT got minted. Which coin are they planning to pump?” This question adds to the intrigue surrounding the significant injection of Tether into the crypto market.
Also Read: Tether to Soon Be Controlled by US Authorities? JPMorgan Sounds Alarm
Can Bitcoin Break Its ATH?
While Bitcoin impressively surpassed $65,000, it hasn’t reached its all-time high in U.S. dollar terms, marked at over $69,000 on Coinbase in November 2021. Observers note a potential correlation between Bitcoin’s performance and the U.S. Dollar Index, suggesting a possible impact on Bitcoin’s trajectory.
The spike in Bitcoin’s price triggered a surge in liquidations, with over $80 million in bitcoin positions, mostly shorts, liquidated. The entire crypto market saw over $160 million in liquidated short positions in the last 24 hours, emphasizing the impact of Bitcoin’s volatility.
Also Read: Why is Bitcoin Price Up Today? Is New ATH Imminent This Week?
Tether CEO Clarifies Purpose
Tether’s CEO, Paolo Ardoino, addressed the speculation, clarifying that the newly minted $1 billion USDT is reserved for future issuance requests and chain swaps. This authorized but not issued transaction serves as inventory for upcoming needs.
Additionally, Tether achieved a significant milestone, crossing the $100 billion market capitalization mark, reflecting a 9% year-to-date growth. Tether’s dominance in the stablecoin market, with over 70% market share according to DefiLlama, is further solidified.
Keeping a watchful eye
However, Tether’s growing market cap and dominance have caught the attention of JPMorgan analysts. They express concerns about potential issues related to regulatory compliance and transparency, highlighting the need to address these matters in the digital currency world.