tl;dr
Tether's treasury has minted 1 billion USDT on May 16, raising concerns about its potential impact on the crypto market. Tether's CEO explained that the minted USDT will be used for future issuance requests and chain swaps. Previous instances of USDT minting have coincided with positive effects on B...
Tether's recent minting of 1 billion USDT on the TRON blockchain has sparked speculation about its potential impact on the cryptocurrency market. This significant increase in USDT supply has raised concerns and led to discussions about potential effects on Bitcoin's price stability.
Tether's CEO, Paolo Ardoino, explained that the newly minted USDT will be held as inventory for future issuance requests and chain swaps. This move comes amid a history of positive effects on Bitcoin's price following previous instances of USDT minting, leading to speculation about its potential influence on market movements.
In the last 24 hours, despite the substantial USDT issuance, Bitcoin's price has remained stable within the $64,000-$66,000 range. This stability follows recent fluctuations linked to US inflation data, hinting at a potential correlation between economic indicators and cryptocurrency prices.
Analysis of on-chain data reveals that Tether Treasury minted 1 billion USDT on May 16, indicating a significant increase in the stablecoin's supply. Considering Tether's prominent position in the market, there is widespread anticipation regarding the potential impact of this large USDT issuance on cryptocurrency market movements.
Notably, the last time Tether minted USDT was on April 16, coinciding with a market liquidity drain. According to a report from on-chain analytical platform Lookonchain, Tether Treasury has minted a total of 31 billion USDT in the past year across the TRON and Ethereum blockchains. Interestingly, these previous USDT mintings have coincided with price corrections and have commonly had a positive effect on Bitcoin's price development.
Furthermore, data from CryptoQuant reveals a high correlation between USDT supply and Bitcoin price movement, suggesting a significant influence on the dynamic environment and volume of Bitcoin's price. This correlation has led to speculation within the crypto community that the influx of new funds might be used to drive Bitcoin's price upward.
Despite these speculations, Bitcoin's price has remained stable between $64,000 and $66,000 in the last 24 hours, following fluctuations tied to US inflation data. Last week, Bitcoin fluctuated between $60,000 and $62,000 until the release of US inflation data, which sparked a jump in Bitcoin's price to $66,000, hinting at a potential impact of economic indicators on cryptocurrency prices.
More about Emeren Group Ltd
Emeren Group Ltd, ReneSola Ltd, develops, builds, operates and sells solar energy projects. The company is headquartered in Stamford, Connecticut.
Industry: MANUFACTURING, SEMICONDUCTORS & RELATED DEVICES
Market Cap: 114.563B
Dividend Yield: None
EPS: -0.16
PE Ratio: 1.852
52-Week High: -0.0891
52-Week Low: 104.671B
50-Day Moving Average: 5.5
200-Day Moving Average: 3.42
Price to Sales Ratio: 1.128