- Tether’s USDT supply has surged 13.6% since ATH, defying typical bearish market cap trends.
- $15B in new USDT may signal preparations for a major market move, potentially driving Bitcoin’s next surge.
- Bitcoin’s consolidation at $61K coincides with Tether’s supply growth, suggesting a strategic setup for a future bullish phase.
The crypto market has recently seen substantial developments in the supply of USDT, particularly amid Bitcoin’s ongoing sideways trend since reaching $74,000 in March. Despite the general expectation that Tether’s market cap should decrease during bear markets or corrections, the data suggests a different scenario.
A prominent crypto analyst, @DrProfitCrypto, highlights this anomaly, noting that USDT’s supply has surged by 13.6% since its all-time high (ATH), hinting at a possible upcoming shift in the market.
USDT Supply Growth and Market Implications
Tether’s consistent printing of USDT during a sideways market movement is unusual, especially as the market cap typically shrinks during bearish phases. Notably, Tether’s market cap has grown significantly, with an additional $15 billion worth of USDT yet to be introduced into the market.
This expansion in supply could suggest preparations for a substantial market move, possibly setting the stage for Bitcoin’s next leg up. Today alone, another $1 billion was minted, but the market has yet to react to this development, raising questions about the potential for a future bullish run.
Bitcoin’s Current Position
Bitcoin’s current market conditions show a period of sideways movement, with the price currently at $61,006.96, a 2.99% increase over the past 24 hours. The overall market cap stands at $1.2 trillion, with a trading volume of $29.15 billion, marking a 21.02% decrease.
These figures indicate a consolidation phase, with almost 94% of Bitcoin’s total supply already circulating. Despite this, the steady supply of USDT suggests that Tether could play a pivotal role in driving Bitcoin’s next price movement.
Potential Impact of Tether’s Actions on the Market
The substantial increase in USDT supply during a period of minimal price movement for Bitcoin might indicate strategic positioning by Tether for a future market surge. With $15 billion worth of USDT still on the sidelines, the market is likely waiting for the right moment to inject this liquidity.
As Bitcoin remains in a consolidation phase, Tether’s actions could eventually trigger a new all-time high for Bitcoin, aligning with the observations made by @DrProfitCrypto. The market’s current indifference to the minting of additional USDT suggests a potential underestimation of its impact, which may become evident in the coming months.
