Is the surge in Bitcoin price due to correlation or coincidence fueled by Tether minting?
Bitcoin’s price has surged to its highest point since 2021, coinciding with Tether’s minting of 1 billion USDT. This has led to increased volatility in the market, particularly with the liquidation of leveraged short positions. Tether’s CEO has clarified that the newly minted USDT is not yet issued and will be used for future issuance requests.
The surge in Bitcoin’s price and the injection of Tether into the market has sparked discussions within the crypto community. Renowned investor Elja has questioned which coin Tether plans to pump with the newly minted USDT, adding to the intrigue surrounding this significant move.
While Bitcoin has surpassed $65,000, it has not yet reached its all-time high in U.S. dollar terms. Observers have noted a potential correlation between Bitcoin’s performance and the U.S. Dollar Index, suggesting that it could impact Bitcoin’s trajectory.
The spike in Bitcoin’s price has led to a surge in liquidations, with over $80 million in bitcoin positions, mostly shorts, being liquidated. The entire crypto market has seen over $160 million in liquidated short positions in the past 24 hours, highlighting the impact of Bitcoin’s volatility.
Tether’s CEO, Paolo Ardoino, has addressed the speculation surrounding the minting of 1 billion USDT. He clarified that this amount is reserved for future issuance requests and chain swaps, serving as inventory for upcoming needs.
In addition to this, Tether has achieved a significant milestone by 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, is further solidified.
However, JPMorgan analysts have raised concerns about Tether’s growing market cap and dominance. They emphasize the need to address potential issues related to regulatory compliance and transparency in the digital currency world.
Overall, the surge in Bitcoin’s price and the injection of Tether into the market have sparked conversations and raised questions within the crypto community. The impact of these developments and their potential implications will continue to be closely monitored.