Will The New $2B USDT Injection Influence More Market Momentum?
Prominent USDT stablecoin issuer Tether has continued to mint staggering billion-dollar sums recently, sparking more bullish enthusiasm in the crypto space. On Saturday, Whale Alert disclosed that 1,000,000,000 USDT had been minted at Tether Treasury. Within three minutes of the update, Whale Alert proclaimed another $1 billion USDT minting from Tether.
This recent injection of $2 billion into the crypto market within 24 hours has garnered significant interest from community members, as both tweets announcing the minting have been widely viewed. The prevailing sentiment in the comment section is bullish, with market participants anticipating further gains for Bitcoin and the broader crypto market.
To address potential misinformation, Tether CEO Paolo Ardoino clarified that while the transaction for minting $2 billion USDT was authorized, it had not yet been issued. This amount would serve as inventory for future issuance requests and chain swaps.
Some users, such as Exponential Research, view the consecutive billion-dollar mintings as extremely bullish for the crypto market. They argue that Tether printing $2 billion implies an additional $2 billion in demand for spot buying of crypto or as collateral for purchasing crypto on leverage, suggesting that the upward trajectory of the crypto market will continue until significant flows cease.
Renowned analyst Michaël van de Poppe noted that the altcoin market capitalization still needs to gain 70% to reach the previous cycle’s peak. As Bitcoin breaks new all-time highs, he observes that altcoins are lagging behind. Despite a possible short-term correction, the analyst anticipates a surge in altcoins to an all-time high.
It is important to note that the information presented in this article is for informational and educational purposes only and does not constitute financial advice. Exercise caution and conduct thorough research before making any investment decisions.