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Tether mints $1.3B USDT since market bottom — Can it push Bitcoin above $65K?

CointelegraphCointelegraph2024/08/09 12:06
By:Zoltan Vardai

Tether, the issuer of the world’s largest stablecoin, has minted over $1.3 billion worth of stablecoins since the market bottom, as investors are seemingly preparing to buy the dip.

Tether’s Treasury printed over $1.3 billion worth of Tether USDt ( USDT ) since the market bottomed on Aug. 5.

The $1.3 billion was transferred to some of the most popular centralized cryptocurrency exchanges (CEXs), including Kraken, Coinbase, OKX and Bullish, according to an Aug. 9 X post by Lookonchain .

Tether deposits since Aug. 5. Source: Lookonchain

Large stablecoin inflows to crypto exchanges could signal incoming buying pressure since stablecoins are the main on-ramp from the fiat to the crypto world, used by investors.

Related: $350M Ether set for withdrawal in next 9 hours — Can ETH price remain above $2.2K?

Is the local crypto market bottom in?

Following the aggressive $510 billion crypto market sell-off, the local market bottom may be in.

Investors have started minting the $1.3 billion USDT since Aug. 5, when Bitcoin ( BTC ) price bottomed at a five-month low of above $49,500 before starting to recover, according to Bitstamp data .

BTC/USD, 1-day chart. Source: TradingView

Since Aug. 5, Bitcoin price staged an over 21% recovery to trade at $60,271 as of 10:44 am UTC. The world’s first cryptocurrency rose over 5.2% during the past 24 hours.

Related: Vitalik Buterin moves $8M Ether to new wallet — Possible donation ahead?

Can USDT help push Bitcoin above the key $65,000 mark?

Bitcoin could still see more downside volatility unless it manages to reclaim the crucial $64,000 to $65,000 mark.

This price level acts as the short-term whale holder realized price for large Bitcoin holding entities, according to an Aug. 9 X post by CryptoQuant.

“The short-term holder whale realized price is in the 64K-65K range. This level may present itself as a resistance.”
BTC Realized Price: Short-term vs. Long-term Whales. Source: CryptoQuant

Inflows from the US spot Bitcoin exchange-traded funds (ETFs) have also turned positive, which could contribute to Bitcoin's price appreciation. The US Bitcoin ETFs amassed a cumulative $194 million worth of net positive inflows on Aug. 8, according to Farside Investors data .

Bitcoin ETF Flow (US$m). Source: Farside Investors

ETF inflows can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin, ETFs had accounted for about 75% of new investment in the world’s largest cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.

Magazine: Chinese boomers joining crypto tapper cults, WazirX fallout worsens: Asia Express

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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