Recent events in the cryptocurrency world continue to draw attention. Tether, the issuer of the stablecoin USDT, has created a large amount of new USDT through its treasury. According to blockchain data, the Tether Treasury minted 1 billion USDT on May 16 at 19:50. Given Tether's prominent market position, many speculate that this large issuance of USDT might affect crypto market dynamics.

Major Move by Tether

Paolo Ardoino, Tether’s CEO, provided context for this substantial coin creation. He mentioned that the 1 billion USDT was added to the inventory on the Tron Network, highlighting that this was an authorized but not yet regulated transaction. Ardoino stated, “This amount will be used as stock for future issuance requests and chain swaps.”

The previous minting by Tether occurred on April 16, when the market faced liquidity challenges. According to blockchain data analysis platform Lookonchain, the Tether Treasury created 31 billion USDT last year on the TRON and Ethereum blockchain networks.

Interestingly, Tether minted this new batch of USDT when Bitcoin’s price had corrected to around $64,600. Since the end of 2022, increases in USDT supply have generally had a positive effect on Bitcoin’s price.

Current USDT Activities

Data from CryptoQuant shows a strong link between USDT supply and Bitcoin price movement, which increases volume and creates a dynamic market environment for Bitcoin. This situation has led to speculation within the crypto community that new funds could boost Bitcoin’s price. Additionally, Lookonchain’s report indicated that last year’s USDT minting helped push Bitcoin’s price above $70,000, stating, “This minted USDT raised Bitcoin’s price from $27,000 to $73,000.”

Despite these speculations, Bitcoin’s price has remained between $64,000 and $66,000 over the past 24 hours. Last week, Bitcoin's price ranged from $60,000 to $62,000 until the US inflation data was released. Following a reported slowdown in April inflation, Bitcoin’s price rose from $62,000 to $66,000.

In conclusion, Tether's recent minting of a significant amount of USDT has generated discussions about its potential impact on the cryptocurrency market, particularly Bitcoin. As market participants watch closely, the relationship between USDT supply and Bitcoin's price movement continues to be a critical focus.