Bitcoin, the pioneer cryptocurrency, experienced a significant price surge on Friday, reaching above $67,000 for the first time since April 24. This positive price movement has been attributed to various factors, including the latest Consumer Price Index (CPI) data showing low inflation levels. However, the price of Bitcoin is influenced by multiple factors and one such factor that could potentially lead to another rally is the supply of a specific stablecoin.
A recent report by blockchain analysis platform LookonChain suggests that Bitcoin might soon witness another surge in price due to an increase in the supply of a particular stablecoin. The Tether Treasury recently minted an additional 1 billion USDT, indicating a growing demand for this stablecoin. USDT, the third-largest cryptocurrency by market cap, has seen significant growth over the past year, with over 31 billion new tokens minted on the Tron and Ethereum networks. This rise in USDT market share has played a crucial role in Bitcoin’s price surging from $27,000 to $73,000 in the last fifteen months. The increased liquidity provided by investments in USDT can impact Bitcoin’s supply and demand dynamics, leading to potential price increases.
With the recent minting of 1 billion USDT by the Tether Treasury, many investors and observers anticipate a positive impact on Bitcoin’s price, especially amidst the ongoing crypto bull season. However, it’s essential to consider that Bitcoin’s price movement in the coming months will also be influenced by other factors, such as the BTC spot exchange-traded fund (ETF) market. Data from SoSoValue indicates significant net inflows into the Bitcoin spot ETF market, reaching $177.01 million on Friday, with a total market value of $12.58 billion. As more traditional finance players enter the market, Bitcoin is expected to see increased demand, potentially leading to substantial price gains.
As of the time of writing, Bitcoin is trading at $66,853, reflecting a gain of 9.64% in the last week. The cryptocurrency is currently in a consolidation phase as it prepares to break through the $67,000 resistance level. Based on historical price data and the ongoing crypto bull season, Bitcoin is likely to remain a top choice for investors seeking significant returns in the digital asset market.