Tether mints another $1B mint — Last time it helped Bitcoin climb to $73K

Bitcoin flipped its old resistance into support as Tether’s market cap continues to grow rapidly in 2024.

Tether (USDT), the world’s largest stablecoin, has minted another $1 billion, bringing its market capitalization above $110 billion, which could catalyze Bitcoin’s (BTC) next move to new all-time highs.

Will more USD Tether boost Bitcoin’s price?

Tether’s Treasury minted $1 billion worth of USDT during the past 24 hours, bringing its yearly total to $31 billion.

The newly minted USDT was a big reason why Bitcoin price climbed from $27,000 to $73,000, according to a May 17 post from Lookonchain:

Tether could also directly contribute to Bitcoin’s rally, as the company said it would invest 15% of its net profit into Bitcoin to diversify the stablecoin’s backing assets.

Tether acquired 8,888 Bitcoin worth $618 million on March 31, making the stablecoin issuer the seventh-largest Bitcoin holder in the world, according to Bitinfocharts. Tether’s wallet currently holds over 78,317 BTC worth over $5.18 billion, one year after announcing it’s plan to diversify into Bitcoin.

Meanwhile, Bitcoin’s price action is still largely dependent on institutional inflows into spot Bitcoin exchange-traded funds (ETFs). The inflows from the United States Bitcoin ETFs saw their second week of net positive outflows, amassing over $200 million worth of cumulative net flows so far, according to Dune.

Institutional inflows from ETFs were a significant part of the current Bitcoin rally to new all-time highs. By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.

Related: M2 money supply ‘holds the key’ for Bitcoin’s next move — Market analyst

Bitcoin breakout confirmed — daily chart

Bitcoin’s price action has confirmed yesterday’s breakout on the daily chart, where the $65,000 mark seems to act as a strong support for BTC, according to TradingView.

Another bullish sign for investors is that Bitcoin flipped it’s old resistance into support on the monthly chart, according to a May 16 X post by popular crypto analyst Rekt Capital:

“Bitcoin has successfully turned the old major resistance into a new major support.”

However, Bitcoin could still see a temporary correction to below $63,500 before reclaiming the $70,000 psychological mark, according to the artificial intelligence-based predictions algorithm of ScorehoodAI that wrote in a May 16 X post:

“Now it is time for a temporary pull-back to around $63,000 – $63.500 for Bitcoin! As we reclaimed $65,000 and are on the the way to $70,000+, this will be a healthy pullback for liquidating high-leveraged greedy traders!”

A potential Bitcoin correction to below $63,500 would liquidate over $1.76 billion worth of cumulative leveraged long positions, according to Coinglass data. Liquidations would reach $1.87 billion under the $63,000 mark.

Related: Crypto trader turns $3K into $46M in one month as PEPE price soars

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.