The benchmark cryptocurrency, Bitcoin, enjoyed a significant boost on Friday, with an upward tick of 2.9%, ushering its trading value above the $67,000 threshold for the first time since April 24. This spirited performance was linked to subdued inflation levels as seen in the most recent Consumer Price Index (CPI) data.
Cryptocurrencies, however, are notoriously mercurial — a characteristic that Bitcoin isn’t immune to. A recent analysis by blockchain investigation platform LookonChain indicates that Bitcoin may be gearing up for another surge in its value due to a particular stablecoin’s swelling supply.
Tether Treasury, the entity behind the USDT stablecoin, reported minting an additional 1 billion USDT. This action signals a growing demand for the stablecoin, which maintains its title as the third-largest cryptocurrency and leads its phase of the market — with a valuation of $111.25 billion.
The last year has seen a remarkable expansion of USDT, with over 31 billion tokens created on the Tron and Ethereum networks. An intriguing discovery by LookonChain suggests the surge in USDT market share played a substantial role in Bitcoin’s upward journey from $27,000 to a whopping $73,000 over the last fifteen months.
The correlation is thought to lie in an uptick of trader liquidity fueled by investments in USDT, thereby creating more substantial market liquidity. This fluidity has been known to adjust Bitcoin supply and demand dynamics and frequently spark a lift in Bitcoin’s price.
With Tether Treasury’s latest minting of another billion USDT, many are watching with bated breath to see if a forthcoming, correlating bounce for Bitcoin is nigh.
In the coming months, however, Bitcoin’s price isn’t only leveraged on USDT’s performance. Influencing factors such as the BTC spot exchange-traded fund (ETF) market will still be in play. Friday’s data from SoSoValue revealed net inflows of $177.01 million, bringing the Bitcoin spot ETF market total to $12.58 billion. As conventional financial behemoths continue to stake claims in this innovative market, the predicted surge in Bitcoin demand could yield significant pricing boons.
At the time of writing, Bitcoin is trading at $66,853, reflecting a 9.64% upsurge over the past week. This market leader is currently consolidating, gathering momentum to breach the $67,000 resistance level.
Despite global economics’ unpredictable nature, Bitcoin appears set to maintain its “diamond” status among investors during the impending cryptocurrency bull season, relying on its historical price data. However, the need for careful research remains paramount for investors and traders before plunging into any market maneuvering. It’s of vital importance to cautiously navigate the market, considering the high volatility and rapid changes so characteristic of the cryptocurrency world.
