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Significant developments continue to occur in the cryptocurrency market. Accordingly, USDT issuer Tether minted a substantial amount of stablecoin through its treasury. Blockchain data reveals that the Tether Treasury minted 1 billion USDT on May 16 at 19:50. Considering Tether’s leading position in the market, many believe this large USDT issuance could impact crypto market movements.
Notable Move by Tether
Tether’s CEO Paolo Ardoino explained the context of this significant coin minting. He stated that 1 billion USDT was added to the inventory on the Tron Network, noting that this was an authorized but unregulated transaction:
“So this amount will be used as stock for future issuance requests and chain swaps.”
The last time Tether minted USDT was on April 16, when the market was experiencing liquidity issues. According to a report by blockchain data analysis platform Lookonchain, the Tether Treasury minted 31 billion USDT last year. These amounts were minted on the TRON and Ethereum blockchain networks.
Interestingly, Tether minted this amount of USDT when Bitcoin’s price corrected to the $64,600 range. Since the end of 2022, each increase in USDT supply has generally had a positive impact on Bitcoin’s price development.
What’s Happening on the USDT Front?
Data from CryptoQuant reveals a high correlation between USDT supply and Bitcoin price movement; this leads to an increase in volume and a dynamic environment for Bitcoin’s price. Therefore, this situation has led to speculation among the crypto community that new funds could be used to boost Bitcoin’s price. Moreover, Lookonchain’s report stated that the USDT minted last year pushed Bitcoin above the $70,000 range, noting:
“This minted USDT raised Bitcoin’s price from $27,000 to $73,000.”
Despite this speculation, Bitcoin’s price stabilized between $64,000 and $66,000 in the last 24 hours. Last week, Bitcoin was priced between $60,000 and $62,000 until the US inflation data was released. After the inflation data recorded in April showed a slowdown in inflation, Bitcoin’s price rose from $62,000 to $66,000.
