Tether Hits $100 Billion Market Cap, Creates $1 Billion USDT Amidst Bitcoin’s Rise to $65,000
Bitcoin Soars Above $65,000 as Tether Treasury Mints 1 Billion USDT
In a remarkable turn of events, Bitcoin has surged past the $65,000 mark, reaching its highest value since 2021. Coinciding with this milestone, the Tether Treasury has minted 1 billion USDT, causing a stir and sparking discussions within the crypto market.
The cryptocurrency community has been closely monitoring Tether’s activities, especially its issuance of USDT, as it has historically been linked to significant increases in the value of Bitcoin. The recent creation of 1 billion USDT has reignited speculation about its potential impact on Bitcoin’s price. Analysts have observed a pattern where Tether’s issuance aligns with notable surges in Bitcoin’s value.
Renowned crypto investor Elja posed a question to the community, asking, “With $1,000,000,000 USDT being minted, which coin are they planning to pump?”
Although Bitcoin has surpassed the $65,000 mark, it has not yet surpassed its all-time high in terms of the U.S. dollar. Coinbase recorded its highest value at over $69,000 in November 2021. A report suggests a possible correlation between Bitcoin’s performance and the U.S. Dollar Index, indicating an upward trend in the index that could impact Bitcoin.
The spike in Bitcoin’s price has led to a significant increase in liquidations of leveraged bitcoin positions. The volatility in the market has resulted in over $80 million worth of bitcoin positions being liquidated, with the majority being shorts. In the past 24 hours, the overall crypto market has witnessed over $160 million in liquidated short positions.
To address the speculation surrounding the minting of 1 billion USDT, Paolo Ardoino, the CEO of Tether, clarified that this newly minted USDT is intended for future issuance requests and chain swaps. In a tweet, Ardoino explained that the 1 billion USDT is authorized but not yet issued, and will be used as inventory for future issuance requests and chain swaps on the Ethereum Network.
Additionally, Tether has achieved a significant milestone by surpassing a $100 billion market capitalization, reflecting a 9% year-to-date growth. This achievement highlights Tether’s dominance in the stablecoin market, as it currently holds over 70% market share, according to DefiLlama.
It is worth noting that JPMorgan analysts previously expressed concerns about Tether’s growing market share and its potential implications for regulatory compliance and transparency.
Tags: Bitcoin