Tether (USDT), the largest stablecoin in the world, has generated an additional $1 billion, pushing its market capitalization over $110 billion. This influx of USDT could potentially drive Bitcoin (BTC) to reach new all-time highs.
Over the past 24 hours, Tether’s Treasury has minted $1 billion worth of USDT, bringing its total for the year to $31 billion. According to a report from Lookonchain, this newly minted USDT played a significant role in the increase of Bitcoin’s price from $27,000 to $73,000.
Tether’s contribution to Bitcoin’s rally doesn’t stop there. The company has announced that it will invest 15% of its net profit into Bitcoin in order to diversify the assets backing the stablecoin. Tether became the seventh-largest holder of Bitcoin in the world after acquiring 8,888 BTC worth $618 million on March 31. Currently, Tether’s wallet holds over 78,317 BTC worth over $5.18 billion, following its plan to diversify into Bitcoin that was announced a year ago.
The price movement of Bitcoin continues to heavily rely on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). According to Dune, the United States Bitcoin ETFs experienced positive outflows for the second consecutive week, accumulating over $200 million in net flows so far.
Institutional inflows from ETFs played a significant role in Bitcoin’s recent rally to new all-time highs. As of February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the world’s largest cryptocurrency as it surpassed the $50,000 mark.
On the daily chart, Bitcoin’s price action has confirmed a breakout, with the $65,000 mark acting as strong support for BTC, according to TradingView. Additionally, on the monthly chart, Bitcoin has successfully turned its old resistance into support, indicating a bullish sign for investors, as noted by popular crypto analyst Rekt Capital.
However, there is a possibility that Bitcoin may experience a temporary correction and drop below $63,500 before reclaiming the psychological mark of $70,000, according to the predictions algorithm of ScorehoodAI. If this correction occurs, it could result in the liquidation of over $1.76 billion worth of cumulative leveraged long positions, with liquidations potentially reaching $1.87 billion if the price falls below $63,000, according to Coinglass data.
Please note that this article does not offer investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.