As a seasoned crypto investor with several years of experience under my belt, I find the recent surge in Bitcoin’s price and stablecoin influx to be an exciting development in the market. The cooling down of the US CPI data has brought much-needed relief to investors, paving the way for a potential rally.
The crypto market is experiencing a resurgence of liquidity, with bitcoin reaching an all-time high of $67,000 following the relaxation of US CPI data. Notably, there has been a significant increase in stablecoin deposits at cryptocurrency exchanges, which may act as a powerful trigger for the ongoing rally in the crypto market.
Tether Mints $1 Billion USDT
Based on information from Lookonchain, I’ve noticed that the Tether Treasury has recently produced an extra billion dollars’ worth of USDT tokens. The most recent minting took place just 13 hours prior to this analysis. Over the past month, there has been a production of an additional $3 billion in USDT by Tether, leading to a substantial increase in its market capitalization from $108 billion to over $111 billion currently.
Over the past year, the Tether Treasury has produced a grand total of 31 billion USDT tokens on both the TRON and Ethereum blockchains. These newly created USDT tokens have significantly impacted Bitcoin’s (BTC) price movement. They helped push Bitcoin’s value from $27,000 to an impressive $73,000.
The Tether Treasury recently issued an additional billion dollars’ worth of USDT tokens, just over an hour ago. In the past year, the Tether Treasury has produced a grand total of 31 billion USDT tokens on both the Tron and Ethereum networks.
These minted $USDT drove the price of $BTC from $27K to $73K.
— Lookonchain (@lookonchain) May 17, 2024
An increase in stablecoin liquidity could lead to a new surge in Bitcoin’s price and the cryptocurrency market as a whole.
Based on CryptoQuant’s analysis, there has been a significant rise in stablecoin deposits. This influx implies a substantial injection of funds into the cryptocurrency sector, which could significantly impact Bitcoin’s supply and demand equilibrium, potentially causing greater price fluctuations within the market.
Bitcoin Liquidity Cycle Still At Lower End
Crypto market analyst Willy Woo has offered some perspectives on Bitcoin’s present liquidity stage, likening it to a preparatory phase.
Based on Woo’s analysis, Bitcoin is currently experiencing consolidation beneath its record highs. Indicators point to a relatively minimal risk for the long term during this stage. He underlines that risk levels tend to rise when market action intensifies, suggesting that the present situation remains tranquil and uneventful.
As a crypto investor, I’d describe the current state of Bitcoin’s liquidity cycle in this way: The larger perspective reveals that Bitcoin is yet to reach its full potential when it comes to market saturation and ease of trading. It’s still going through its preparatory phase, much like an athlete warming up for a race.
From my perspective as a market analyst, the asset has been steadily advancing to new record highs. Over an extended time horizon, the risk indicators have remained relatively subdued. However, it’s important to note that risk typically begins to escalate once significant price increases become widespread.
— Willy Woo (@woonomic) May 17, 2024
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2024-05-17 14:37