Tether Raises Another $1B – Last Time, It Helped Bitcoin Grow To $73K
Tether's USDT (USDT), the world's largest stablecoin, shed another $1 billion, bringing its market capitalization to over $110 billion, which could lead to Bitcoin's (BTC) continued rally to new all-time highs.
Will more USDT increase the value of Bitcoin?
The Tether Treasury has withdrawn $1 billion worth of US dollars in the past 24 hours, bringing its annual total to $31 billion.
According to data posted by Loonchain on May 17th, newly minted USDT was a big reason why Bitcoin price rose from $27,000 to $73,000.
Tether can directly contribute to Bitcoin's rally. The company said it will invest 15% of its net profit in Bitcoin to diversify the assets of the stable coin.
Tether acquired 8,888 BTC worth $618 million on March 31st. The Tether wallet currently holds more than 78,317 BTC, worth more than $5.18 billion, a year after announcing plans to convert to Bitcoin.
Meanwhile, Bitcoin's price action is still largely dependent on institutional inflows into the spot Bitcoin Exchange-Treaded Funds (ETFs). The U.S. Bitcoin ETF saw a second week of net positive inflows, collecting more than $200 million worth of cumulative net inflows so far, Dunn said.
Institutional income from ETFs has been a significant part of Bitcoin's current rally to new all-time highs. In the year On February 15, Bitcoin ETFs accounted for 75% of new investment in the world's largest cryptocurrency, rising above $50,000.
Related: M2 Money Supply ‘Holds the Key' to Bitcoin's Continued Movement – Market Analyst
Bitcoin Crash Confirmed – Daily Chart
According to TradingView, the $65,000 mark has confirmed the breakout of the May 16 price action on the daily chart, which appears to be serving as strong support for BTC.
Another bullish sign for investors is that Bitcoin has reversed its old resistance to support on the monthly chart, according to data posted by popular crypto analyst Rect Capital on May 16.
However, Bitcoin could still see a temporary correction below $63,500 before reaching the psychological $70,000 mark, according to ScorehoodAI's artificial intelligence-based prediction in a May 16 X post:
“Now is the time for a temporary retracement to $63,000 – $63,500 Bitcoin! As we recover $65,000 and are on our way to $70,000+, this will be a healthy pullback to dilute the high potential greedy traders.”
Bitcoin's correction below $63,500 will eliminate more than $1.76 billion worth of leveraged long positions, Coinglass data shows. Under the $63,000 mark, liquidity reaches $1.87 billion.
RELATED: Crypto trader turns $3K into $46M in one month as PEPE price rises
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
