Tether Mints $120 Million In USDT As Bitcoin Price Rebounds

The latest cryptocurrency news show that traders are following a big move from Tether (USDT) to see where the cryptocurrency and Bitcoin (BTC) markets may head next. On Saturday, we could see the crypto markets turning green. Now, Tether mints $120 million into new USDT and this is a quite positive update in the latest news.

💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 120,000,000 #USDT (120,440,672 USD) minted at Tether Treasury

Tx: https://t.co/Y6Pxp4T0oI

— Whale Alert (@whale_alert) April 18, 2020

For those of you who don’t know, Tether (USDT) is a stablecoin that is designed to be pegged to the US dollar and traders often use it to escape crypto market volatility. The coin has been accused of minting USDT in an effort to manipulate the market and push the prices higher – but the company revealed that it simply creates new crypto assets when there is a rise in demand.

The chief technology officer (CTO) at Tether, Paolo Ardoino, calls the minting of $120 million of USDT an “inventory replenish” and says that the new tokens will be used to meet the future demand.

PSA: 120M USDt inventory replenish.
Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.

— Paolo Ardoino (@paoloardoino) April 18, 2020

As Tether mints $120 million, we can see that the issuance of new USDT is highly correlated with the previous Bitcoin surges. The company says that BTC rallies 70% of the time when new USDT is minted.

For now, however, this does not seem to be the momentum we are seeing on the markets. The Bitcoin news now show that the price of the most dominant coin is below $6,900 today to a new low from the high above $7,200 yesterday. We could easily see that this market decline has a lot to do with the collapse of the oil market and the current crisis around crude oil reserves.

In the future, Tether (USDT) is expected to be pegged to $1 and increase its volumes even more – offering traders a simple solution to convert their US dollar holdings in a 1:1 ratio. In a scenario like this, users hold USDT and are ready to trade it against a variety of different coins.

For now, the situation on the market is stabilizing with many losses in the top 10 and top 20. One of the biggest losers besides BTC, as usual, is Bitcoin Cash (BCH) which declined by 6.53% as well as Binance Coin (BNB) which extended its losses to arrive at $15.22 as its price today.