$120 Million USDT Was Just Minted, What’s In It For BTC?

$120 million USDT was just minted and the market capitalization of Tether’s USDT is consistently growing making it a leader dollar stablecoin as we are reading in the Tether news today.

The size of the bitcoin community is slowly decreasing over the past few months but will something change with the newly minted tether tokens now? The fourth-largest by market cap, Tether, responded to an increase in demand over the past few weeks and Whale Alert tracked a series of transactions that prove that the USDT tokens are in high demand.

Just today, it was reported that another $120 million USDT tokens were minted and the analysts believe that this could be extremely important for Bitcoin but for the rest of the crypto market as well. According to the latest data from the crypto analytics tracker Skew.com, the amount of USDT coins in circulation passed seven billion today, which is 3.4% of the entire crypto market capitalization per CoinmarketCap.

The analysts believe that this trend will be positive for the rest of the crypto market and that the minting can explain a lot of the Bitcoin recovery from $3,700 to its current price. Charles Edward who is a digital asset manager said that major changes in Tether’s have led Bitcoin’s price over the past 1.5 years.’’

Before the 50 percent crash back in 2018 in November, when Bitcoin plunged to $3,150 from $6,000, the amount of USDT tokens circulating dropped by hundreds of millions and before the majority of 2019 the crypto rally was printing millions worth of USDT coins. This makes sense from a fundamental standpoint. Ryan Selkis from MEssari explained that with now $3 billion worth of stabelcoins sitting on exchanges, there is a huge chance that the cryptocurrency could boom but Bitcoin will as well since the largest market for USDT is BTC.

The CEO and CIO of Three Arrows Capital Su Zhu, summed up the narrative when he commented back in Q1 when there was a mere $2 billion worth of value locked up in dollar stablecoins:

 “There’s an estimated $2B in cash sitting at crypto funds/holdcos. There’s another $2B+ sitting in stablecoins, and another $2B sitting at exchanges/silvergate/signature. […] Imagine thinking we need new money [for Bitcoin] to hit $10k.”