Bitcoin Turns Previous Resistance into Support Amid Rapid USDT Market Cap Growth in 2024
Tether’s USDT, the world’s largest stablecoin, has minted another $1 billion, pushing its market capitalization above $110 billion. This surge could potentially drive Bitcoin (BTC) to new all-time highs,
Can More USDT Drive Bitcoin’s Price Up?
The recent surge in USDT supply was a major factor in Bitcoin’s rise from $27,000 to $73,000.
Tether could significantly boost Bitcoin’s rally by investing 15% of its net profit in Bitcoin to diversify its stablecoin’s backing assets.
On March 31, Tether acquired 8,888 BTC valued at $618 million, making it the seventh-largest Bitcoin holder globally, according to Bitinfocharts. Currently, Tether’s wallet holds over 78,317 BTC, worth more than $5.18 billion, just one year after announcing its diversification plan into Bitcoin.
Meanwhile, Bitcoin’s price action remains heavily influenced by institutional inflows into spot Bitcoin exchange-traded funds (ETFs). U.S. Bitcoin ETFs have experienced their second consecutive week of net positive inflows, accumulating over $200 million in total net flows so far.