TL;DR
- Tether issued over a billion dollars in USDT, fueling speculation about movements in the crypto market.
- Tether CEO Paolo Ardoino explained that the new tokens are intended to replenish the USDT inventory on the Tron network, although they have not yet been officially issued.
- The crypto community speculates on the impact on the price of Bitcoin, with some analysts suggesting it could reach $72,000, based on the historical correlation between massive USDT issuances and increases in the price of BTC.
Recently, Tether, the issuer of the stablecoin USDT, has undertaken a massive production of over a billion dollars in USDT. This action has stirred considerable controversy in the crypto community, as it is seen as an indication of potential market movements, especially regarding Bitcoin.
Tether CEO Paolo Ardoino stepped in to clarify the situation. He explained that the newly created tokens are intended to replenish the USDT inventory on the Tron network. Additionally, he emphasized that although the transaction has been authorized, it has not yet been officially issued. This statement suggests that the funds will be available for future issuance requests and chain swaps.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (1,001,555,000 USD) minted at Tether Treasuryhttps://t.co/iKQJX5o2BP
— Whale Alert (@whale_alert) March 4, 2024
The news of this massive USDT issuance has led to speculation in the crypto community about the potential impact on the price of Bitcoin. Some analysts and community members have interpreted this move as a bullish signal for Bitcoin. It has been suggested that the price of BTC could reach $72,000, given the precedent of massive USDT issuances and their correlation with increases in the price of BTC in the past.
Bitcoin Approaching its All-Time High – Could Tether Provide the Missing Boost?
This optimism has been reflected in the reaction of some prominent members of the community. One researcher noted that the issuance suggests a bullish momentum for BTC. Similarly, podcaster Tony Edward expressed confidence in a significant increase with a GIF. Suggesting that the market-leading cryptocurrency is poised to reach astronomical levels of value.
It is important to note that, according to CoinMarketCap data. Bitcoin was on the verge of breaking its 2021 all-time high. Reaching a price of $68,785 in the last 24 hours. Despite a brief retraction, Bitcoin is still trading at over $67,500, with a market capitalization exceeding $1.3 trillion.
