As Bitcoin surpasses the $65,000 threshold, the new high since 2021 coincided with the Tether Treasury minting $1 billion, sparking speculation and discussion in the crypto market.
Link between Tether shares and Bitcoin price
The cryptocurrency community is closely monitoring Tether's activities, particularly the creation of USDT, as they have historically correlated with significant rises in the value of Bitcoin. The recent creation of one billion USDT has reignited discussions about the potential effects on the price of Bitcoin. Analysts point to a historical trend in which the issuance of Tether aligns with notable increases in the value of Bitcoin.
Name of a renowned crypto investor Elja asked the community in an X post: “1,000,000,000 USDT has been minted. What part are they planning to pump?
The price of Bitcoin
Although Bitcoin has surpassed $65,000, it has yet to surpass its all-time high in US dollar terms, recorded at over $69,000 on Coinbase in November 2021. The report notes a potential correlation between Bitcoin's performance and the US dollar index, indicating an increase. index trend, which could impact Bitcoin.
The surge in Bitcoin price has led to a notable increase in liquidations of leveraged Bitcoin positions. The volatility led to the liquidation of more than $80 million in bitcoin positions, the majority being short positions. The overall crypto market saw over $160 million in short positions liquidated in the last 24 hours.
Tether CEO Clarifies His Purpose
Responding to the speculation, Paolo Ardoino, CEO of Tether, clarified that the new $1 billion USDT was intended for future issuance requests and on-chain exchanges.
In a tweet, Ardoino explained: “1 billion USDT of inventory replenished on the Ethereum network. Note that this is an authorized but unissued transaction, which means that this amount will be used as inventory for issuance requests and on-chain exchanges in the following period.
Additionally, Tether reached the significant milestone of a $100 billion market capitalization, showing 9% year-to-date growth. Tether's rise to a $100 billion market cap highlights its dominance in the stablecoin market, holding more than 70% market share, according to DefiLlama.
It should be remembered that Tether's growing market capitalization and dominance have already been scrutinized by JPMorgan analysts, expressing concerns that its growing market share could lead to issues related to regulatory compliance and transparency .