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Tether minted $161M USDT in just 24 hours, Bitcoin is about to increase sharply?

Tether continues to mint more USDT and that could be a sign of what will happen next to Bitcoin and the cryptocurrency market.

The latest move of the Tether Treasury is to cast an additional $ 60,000,000 in the midst of the coronavirus pandemic.

It seems the new money is ready to enter the market shortly. The stablecoin treasury has been trying very recently to increase liquidity, but Tether is leading the way. The controversial stablecoin is injecting an additional 60 million USDT into the Bitcoin market.

According to the CTO of Bitfinex, Paolo Ardoino, the new USDT is for replenishing inventories. This means it has not yet been released into the market, but it is likely to be cast for an organization or whale. It is not clear when we could witness this 60 million USDT entering the market.

Some have compared minting of Tether’s new untested USDT money to a ‘bailout’ and the Fed printing money to support the economy. Last September, the co-founder of Tether said that it doesn’t really matter if USDT is backed by an equivalent amount of dollars. Does Tether simply Fed and print its money but give the cryptocurrency space? Some users seem to be inclined to this theory.

Tether increased USDT circulating supply to 13.3% in three months

According to data recently shared on Telegram by Unlolded, a group analyzing Bitcoin and cryptocurrencies, Tether increased the circulating supply of USDT to a staggering 13.3% in the past three months, with the number of $ 161 million tokens being minted in the past 24 hours.

In less than 3 months, the supply of Tether traffic increased by 13.3% or 627 million USDT to be put into circulation.

Tether minted USDT 2

While the addition of this huge amount of USDT to the cryptocurrency ecosystem has come about during the time of huge selling pressure on Bitcoin, historical precedent seems to indicate that this is a sign of a high price increase for BTC in the near future.

Tether has long been accused of using its USDT minting ability to manipulate Bitcoin, with the addition of these tokens to the cryptocurrency ecosystem that is directly related to huge BTC price fluctuations.

Last year, it faced a lawsuit still going on now with statements that Tether and Bitfinex Treasury used USDT to cover their debts in more than $ 800 million.

The market cap of USDT is strongly correlated with the price of Bitcoin

In terms of why the large increase in the circulating supply of USDT makes sense for Bitcoin, for years there has been a strange correlation between BTC price trends and USDT’s market capitalization.

Charles Edwards, an investor at Capriole, talked about this phenomenon in a recent tweet, explained that he believes the recent increase of USDT’s market cap is a healthy sign for Bitcoin.

Assuming that this trend continues in the future, the recent increase in USDT supply seems to suggest that Bitcoin may soon see some strong bullish momentum.

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