According to data provided by Whale Alert, which tracks whale transactions and large transfers on the blockchain, Tether Treasury has recently minted 1 billion USDT. This action took place during a period when the price of Bitcoin, which sits unquestionably at the top of the market cap rankings, experienced fluctuations.
Why Was Tether Minted?
While Bitcoin’s price has been fluctuating between $51,000 and $53,000 lately, today’s attempt to surpass the $53,000 resistance level by the bulls was unsuccessful. During this period, Tether minted new currency, and Tether CEO Paolo Ardoino made a statement at X explaining the reason behind the creation of 1 billion dollars’ worth of USDT.
According to Ardoino’s explanation, the minting of 1 billion USDT is merely an inventory refresh on the Ethereum Network and is described as an “authorized but not issued transaction.”
Interpreting the statement, the newly minted USDTs will not be immediately released into the market. Instead, they will be held as inventory for future issuance requests and chain swaps.
Looking at Tether’s minting operation, it becomes evident once again how much the demand for USDT, which plays a crucial role in the liquidity of the cryptocurrency market, has increased.
Current Bitcoin Situation
While there are contradictions regarding Bitcoin’s price, the large-scale minting of USDT did not impact BTC. The price of BTC has been trying to reach the $53,000 level for days but has not succeeded. This evening, it encountered strong resistance at the critical $53,000 level and failed to break through.
Following the near breakthrough to $53,000, Bitcoin’s price experienced a sharp pullback, dropping to $50,700.
The substantial minting of USDT by Tether has led to expectations of increased liquidity and potential price movements, according to some market analysts looking back at the past.
The logic behind these analysts’ perspective is that an increase in the supply of USDT could impact Bitcoin’s affordability, which in turn could influence Bitcoin’s price dynamics.
Amidst all these developments, Bitcoin’s price has once again risen above the $52,000 level and is trading at $52,052 at the time of writing.
