Tether, the world's largest stablecoin, has recently minted an additional $1 billion, increasing its market capitalization to over $110 billion. This substantial influx of USDT could potentially propel Bitcoin to new all-time highs.
Over the past 24 hours, Tether's treasury has minted $1 billion worth of USDT, contributing to Bitcoin's price surge from $27,000 to $73,000, as reported by Lookonchain. Tether has also directly invested in Bitcoin, allocating 15% of its net profit to diversify its stablecoin's backing assets.
Tether's Bitcoin Accumulation Soars: A Strategic Diversification Success Story
As of March 31, Tether had acquired 8,888 BTC worth $618 million, making it the seventh-largest Bitcoin holder globally. Currently, Tether's wallet holds over 78,317 BTC, valued at more than $5.18 billion, marking significant growth since announcing its diversification plan one year ago.
Institutional Influence: Spot Bitcoin ETFs Drive Price Surge with $200 Million Inflows
Institutional investments in spot Bitcoin exchange-traded funds (ETFs) have also influenced Bitcoin's price movements. U.S. Bitcoin ETFs have witnessed over $200 million in net inflows over the past two weeks, playing a crucial role in Bitcoin's rally to new highs.
Bitcoin's Bullish Momentum: Navigating Corrections on the Road to $70,000
Bitcoin's recent price breakout, supported by strong $65,000 levels, signals a bullish trend. Although a temporary correction to below $63,500 might occur before reclaiming the $70,000 psychological mark, analysts suggest it would be a healthy correction to liquidate high-leveraged positions.
A drop below $63,500 could liquidate over $1.76 billion in leveraged long positions, with liquidations reaching $1.87 billion under $63,000, according to Coinglass data.
Overall, Tether's significant minting, coupled with institutional investments and technical indicators, suggests a bullish outlook for Bitcoin, potentially driving it to new heights in the near future.